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SAB TV promoters up stake, infuse Rs 709.2 mn till now

Mumbai: The board of directors of Sri Adhikari Brothers Television Network Ltd (SAB TV) has approved the allotment of equity shares on conversion warrants that were issued to the promoter group and others on a preferential basis.

With the conclusion of the latest conversion—which marks the fifth conversion of warrants into equity in the last three months—SAB TV has generated Rs 70.92 crore ( Rs 709.2 million). The company’s promoters have embarked on a stake-consolidation mission by infusing Rs 100 crore ( Rs 1 billion) into the company.

On Friday, the company’s board of directors approved allotment of 10,75,000 (1.075 million) equity shares of face value of Rs 10 each for cash at an issue price of Rs 75.10 (including premium of Rs 65.10) per share.

These shares were allotted upon conversion of 10,75,000 warrants issued on a preferential basis in accordance with the SEBI’s Issue of Capital and Disclosure Requirements, 2009 after the receipt of balance 75 per cent consideration of the issue price.

Following the allotment, SAB TV’s paid-up share capital increased to Rs 34.39 crore ( Rs 343.87 million) divided into 3,43,87,500 equity shares of Rs 10 each.

The company’s share price surged over 3 per cent to settle the day’s session at Rs 100.30 per share, which is Rs 25 or 33 per cent higher than the warrant conversion price. Trading volume too remained high. The counter witnessed 23,000 shares changing hands as against two-week average of 17,000 shares.

Earlier this year, the SAB TV board approved allotment of 25,39,000 equity shares on 14 April and 14,65,000 equity shares on 26 April upon conversion of warrants at an issue price of Rs 75. Upon conversion, the company’s paid-up share capital increased to Rs 31.76 crore ( Rs 317.6 million).

Similarly, in the month of May, the board had allotted 15,44,000 equity shares to warrant-holders. This led to an increase in the company’s paid-up share capital to Rs 33.31 crore (Rs 333.1 million).

On 28 March 2014, the board had allotted the first tranche of 28,20,000 equity shares on conversion of warrants. Consequently, the company’s issued and subscribed capital rose to Rs 27.76 crore ( Rs 277.6 million).

Earlier in the month, SAB TV promoters had unveiled their plans of restructuring the business and to meet the expansion plans decided to infuse funds. The board approved constitution of a restructuring committee to review the business profile of the company and its subsidiaries and group companies and to recommend a suitable business proposition by creation of a suitable structure through division/consolidation of entities forming part of the company and group for improved efficiency and control.

Accordingly, upon receipt of 25 per cent of issue price from the investors, the board allotted 1,00,00,000 (10 million) warrants convertible into even number of equity shares of Rs 10 each at an issue price of Rs 75.10 (including premium of Rs 65.10) per share to the promoter group entities and others on a preferential basis.

Warrants-holders were required to pay the balance 75 per cent of the issue price within 18 months from the date of issue.