DEN Networks ups stake in Gurgaon-based subsidiary to 88.57%
MUMBAI: Sameer Manchanda-promoted DEN Networks has upped stake in its Gurgaon-based subsidiary company, DEN Digital Cable Network (DDCN).
DEN Networks has bought an additional 37.57% shares in DDCN, thus increasing its stake in the subsidiary company from 51% to 88.57%.
The acquisition price for the additional stake is Rs 4.60 crore. The company has purchased stake from the existing shareholders of DDCN.
DDCN is engaged in the business of cable services in Gurgaon in the state of Haryana. The increase in stake will help DEN Networks to consolidate its cable TV business in Haryana.
DDCN posted a turnover of Rs 10.29 crore in FY16, marginally down from Rs 10.98 crore a year ago. The company, which was incorporated on 13 February 2008, had reported a turnover of Rs 10.45 crore in FY14.
Shares of Den Networks ended Tuesday at Rs 81.25 on BSE, up 0.68% from the previous day’s close.
As reported earlier by TelevisionPost.com, DEN Networks is cutting down on the number of subsidiaries to provide a simpler structure. Consolidation could happen at two levels. One route is to get the subsidiaries merged into the parent company. DEN could also ramp up its stake in joint venture companies with the extensive rollout of DAS.