TV18 to raise Rs55 crore for expansion through rights warrant conversion
27 June 2005
Mumbai: The TV18 board announced that it would consider a proposal to advance the date of outstanding warrants issued by the way of a rights issue in November, 2004. The warrants consist of two categories Series A and B, with conversion periods of 18 months and 36 months respectively. Each warrant will be converted into one ordinary share of TV18 at a discount of 25 per cent to the prevailing market price.
The TV18 Group has ambitious plans to emerge as the country's premier general news platform. To finance this expansion, the company is now recommending an early conversion of the warrants at the same terms as stated in the 'offer document'. The company expects to raise approximately Rs55 crore. from this conversion, based on current market price. The promoters also intend to convert their entire holdings of warrants.
The conversion of the warrants will allow the retail shareholders to get TV18 shares at a discount to the market price.
The company intends to use the cash to fund its expansion plans in the news space. TV18 has a presence in business and consumer programmes in English and Hindi. Between CNBC-TV18 and Awaaz, the group's recently launched Hindi language consumer channel, the group claims viewership of over 75 per cent and revenue of over 90 per cent of the business news market on television.