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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.

Hinduja-Ventures-Ltd-coverHVL 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-cover01IMCL 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.

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