Reliance Industries to cut stake in Network18 by 3.1%
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Reliance Industries to cut stake in Network18 by 3.1%
#1
MUMBAI: Reliance Industries Ltd (RIL)
will cut its stake in Network18 Media
and Investments Ltd by 3.1 per cent
for an estimated Rs 200 crore (Rs 2
billion). This exercise is being
undertaken to comply with the
Securities and Exchange Board of
India’s (SEBI) rule of minimum 25 per
cent public shareholding in a listed
company.
RIL, which had last year acquired
majority holding in Network18 for Rs
4,000 crore (Rs 40 billion) through
Independent Media Trust (IMT), said
the move was to comply with the
regulatory guideline of keeping
promoter holding at a maximum of 75
per cent.
The offer for sale, to be held on 8
July, will be priced after market
hours tomorrow. At the current price
the value will be over Rs 200 crore.
Shinano Retail Pvt Ltd, which is
indirectly owned by Mukesh Ambani’s
Reliance Industries Ltd, will be
offloading 3.25 crore shares of Rs 5
each, representing 3.10 per cent of
the equity share capital of
Network18, on 8 July via an offer for
sale.
The sale will be done between 9.15 am
and 3.30 pm on the BSE and NSE on 8
July.
As of 31 March, the promoter
shareholding in Network18 has
increased to 78.10 per cent, which is
exactly 3.1 per cent above the
maximum limit set by SEBI.
Shinano Retail holds 5.18 million
shares of Network18, representing
4.95 per cent stake in the company. It
is effectively 100 per cent owned by
Reliance Industrial Investment &
Holdings (RIIHL), which in turn is a
100 per cent subsidiary of RIL.
Network18 is attracting a whole lot
of investors. On 30 June and 2 July,
the scrip saw respectively 2.69 times
and 2.01 times spurt in trading.
As per Rule 19(2)(b) of Securities
Contracts Regulations (Rules), 1957
(SCRR), listed companies have to
maintain a minimum 25 per cent public
shareholding to ensure liquidity in the
market and discovery of fair price.
As per the rule, if public shareholding
in a listed company falls below 25 per
cent at any time, such company is
required to increase public
shareholding to 25 per cent within 12
months from the date of such fall.
Incidentally, till 30 June 2014,
promoter holding in Network18 was at
72.98 per cent.
Network18 shares closed at Rs 62.60,
up 2.62 per cent, on the BSE on
Monday.
RIL acquired controlling stake in
Network18 on 29 May last year,
including its subsidiary TV18
Broadcast Ltd.
http://www.televisionpost.com/television...18-by-3-1/
ANIL G


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