MUMBAI: IndusInd Media & Communications Ltd (IMCL), a subsidiary of Hinduja Ventures Ltd, will raise Rs 757.54 crore through a rights issue.
The issue of 3.7 crore equity shares will be at a premium of Rs 195 per share.
IMCL, which operates the cable TV business of the Hinduja Group, will use the new capital to redeem preference shares, repay inter-corporate deposits (ICDs) and spend on other corporate activities.
The redemption of preference shares could amount to around Rs 270 crore and ICDs to about Rs 350-400 crore, according to a market source.
The repayment of ICDs include that provided by Grant lnvestrade Ltd, a wholly owned subsidiary of Hinduja Ventures.
The company said that it will issue of 36,953,438 equity shares of face value of Rs 10 each for cash at a premium of Rs 195 per share aggregating to Rs 7,57,54,54,790 on the rights basis in the proportion of 1:2.
As reported earlier by TelevisionPost.
The board of Hinduja Ventures has approved the redemption of 27.04 crore (27,03,60,000) redeemable preference shares of Rs 10 each held by the company in IMCL.
The board has also approved to renounce 2.23 crore (2,23,29,292) shares offered to the company by IMCL on rights basis in favour of GIL.
As reported by TelevisionPost.com earlier, the Hinduja Group has decided to have its cable TV and headend-in-the-sky (HITS) businesses housed in a single entity. The HITS business will move from GIL to IMCL. As part of the process, GIL will demerge its HITS business. It will be merged with IMCL to create a consolidated powerhouse.
The HITS licence, held by GIL, will also move to IMCL. The company will seek approval of the Ministry of Information and Broadcasting (MIB) to transfer the HITS licence.