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Hinduja Ventures sells 1.35% stake in IMCL for Rs 46.60 cr, deal values cable firm at Rs 3,444 cr
MUMBAI: Hinduja Ventures Ltd (HVL) has sold 1.35% stake in its cable TV subsidiary IndusInd Media & Communications Ltd (IMCL) for Rs 46.60 crore (Rs 466 million).
The company has not revealed the name of the buyer.
HVL has sold 10,00,000 equity shares at Rs 466 per share, thereby valuing IMCL at Rs 3,444.06 crore (Rs 34.44 billion). The transaction was based on an independent valuation by a third party.
The holding of the company in IMCL after the sale reduces to 60.56%. Earlier, the company’s holding in IMCL was 61.91%.
In July, HVL had purchased an additional 5.82% stake in IMCL from its subsidiary Grant Investrade Ltd (GIL) for Rs 200.5 crore (Rs 2.01 billion). After the transaction, the company’s holding in IMCL had increased to 61.91%.
The company had bought 43,03,000 shares at Rs 456 per share.
In FY16, IMCL narrowed its net loss by almost 53% to Rs 112.77 crore (Rs 1.13 billion) compared to Rs 239.19 crore (Rs 2.39 billion) a year ago.
Revenue from operations slid 4.58% to Rs 434.4 crore (Rs 4.34 billion) in FY16 from Rs 455.27 crore (Rs 4.55 billion) in the trailing fiscal.
Total expenses fell 13.62% to Rs 594.55 crore (Rs 5.95 billion) from Rs 688.37 crore (Rs 6.88 billion).
IMCL has three million digital customers in Phases I and II of digital addressable system (DAS). The company has another four million analogue customers in Phase III and IV.
After the completion of digitisation, IMCL is expected to have a digital cable TV base of seven million customers. IMCL is present in 32 cities spread across 14 states.
In July, HVL decided to merge the headend-in-the-sky (HITS) business, housed under GIL, with IMCL. The HITS licence, held by GIL, will also move to IMCL. The company has sought the approval of the Ministry of Information & Broadcasting (MIB) to transfer the HITS licence to IMCL.
GIL had posted a net loss of Rs 32.71 crore (Rs 327.1 million) for the fiscal year ended 31 March 2016 on a revenue of Rs 22.40 crore (Rs 224 million) and expenses of Rs 47.09 crore (Rs 470.9 million). The delay in DAS Phase III implementation played a major part in GIL’s performance.