HVL to pump in Rs 448 cr into IMCL via rights issue

MUMBAI: The board of Hinduja Ventures Ltd (HVL) has accorded its approval to acquire 4,48,00,602 equity shares in subsidiary company IndusInd Media and Communications Ltd (IMCL) on rights basis at Rs 100 per share. HVL will pump in Rs 448 crore for subscribing to the rights issue.

The company has been offered shares in the proportion of 5 new equity shares for every 11 equity shares held (5:11) in IMCL. The price of Rs 100 per share represents a premium of Rs 90 per share.

The board has also accorded its approval to subscribe to equity shares of IMCL which may be renounced in favour of the company by the existing members of IMCL and equity shares not taken up or specifically renounced by the shareholders of IMCL and may be made available to the company under the relevant provisions of the issue. The company will subscribe to these equity shares at a price of Rs. 100/- per share.

HVL’s shareholding after subscribing to the equity shares offered on rights basis will increase to 14,33.61,927 equity shares as against 9,85,61.325 equity shares which would be equivalent to 73.66% on the enhanced equity paid-up capital of IMCL.

The shareholding of the company in IMCL will increase in case of subscription of the equity shares of IMCL renounced in favour of the company and further if the company chooses to subscribe for shares not taken up by the other shareholders of IMCL.

“The Board of Directors of the Company at its Meeting held on August 03, 2018 accorded its approval to subscribe 4,48,00,602 equity shares of Rs. 10/- each of IndusInd Media & Communication Limited (IMCL), subsidiary of the Company, offered to the Company on rights basis in the proportion of 5 new equity share for every 11 equity shares held (5:11) at a price of Rs.100/-per share (including premium of Rs. 90/-per share),” HVL said in a filing to the BSE.

“In addition to the above, the Board of Directors also accorded its approval to subscribe, at a price of Rs. 100/- per share (including premium of Rs. 90/- per share), such number of equity shares of IMCL which may be renounced in favour of the Company by the existing members of IMCL and such number of Equity shares not taken up or specifically renounced by the Shareholders of IMCL and may be made available to the Company under the relevant provisions of the Issue.”

IMCL is one of India’s leading integrated multi-system cable and broadcast operator with a presence in all the States and Union Territories of the Country, with more than 1000 locations covering more than over 750 cities.

The company has a subscriber base of over 4 million and close to 97% of its customers are on prepaid payment mode. IMCL provides digital cable and headend in the sky (HITS) service under ‘In Digital’ and ‘NXT Digital’ brands.

During FY2017, IMCL had raised Rs. 757 crore through a rights issue subscribed by HVL, Grant Investrade Ltd (GIL) and a few other shareholders. The issue proceeds have been used to strengthen the equity base of IMCL and infuse funds for operations.

IMCL had reported net losses of Rs. 224.64 Cr. in FY2017 as against Rs. 134.61 Cr. in FY2016. The company had reported revenue of Rs 599.5 crore compared to Rs 497.8 crore.