Network 18 Media forfeits PCCPS

Network 18 Media & Investments Ltd had came out with the Rights Issue of 10,296,451 Partly Convertible Cumulative Preference Shares (PCCPS) of Rs 200/- per PCCPS in March, 2008. As per the terms of the Offer, Rs 100/- was payable on application and balance Rs 100/- was payable within 75 days from the date of allotment. Accordingly, a Call Money Notice was sent to the PCCPS holders to pay the call money of Rs 100/- per PCCPS on or before August 07, 2008 post allotment of PCCPS.

However, a few PCCPS holders did not pay the Call money by the due date, for which the Company had sent several reminders to the defaulting PCCPS holders from time to time for paying the call money amount. The last opportunity to pay the call money was given by the Company to the defaulting PCCPS holders in May 2009, wherein it was clearly mentioned that the failure to pay the call money by the extended date shall result in forfeiture of PCCPS.

Consequently, the Board of Directors of the Company at their Meeting held on July 16, 2009 approved the forfeiture of 12,072 PCCPS in accordance with the Articles of Association of the Company and the Letter of Offer dated March 07, 2008 for non payment of call money.

The stock was trading at Rs.100.45, down by Rs.1.60 or 1.57%. The stock hit an intraday high of Rs.104 and low of Rs.99.50.

The total traded quantity was 23649 compared to 2 week average of 90544.

Source : Equity Bulls

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