DEN Networks Limited , a prominent player in the cable and broadband industry, has announced a strategic move involving its wholly-owned subsidiary, Futuristic Media and Entertainment Limited (FMEL). The company has divested its entire equity stakes in three non-operating subsidiaries for a nominal sum of ₹30.

Divestment Details

FMEL has sold its stakes in three subsidiaries to Infomedia and Networking Private Limited (INPL). The details of the divestment are as follows:

Financial Impact

The divestment of these non-operating entities is expected to have minimal financial impact on DEN Networks:

• Turnover: All three companies reported nil turnover for the fiscal year 2024-25.
• Net Worth:
  • Den Budaun Cable Network had a net worth of ₹5.75 Lakhs as of March 31, 2025, contributing 0.0016% to DEN Networks' consolidated net worth.
  • The other two companies had negative net worth as of the same date.

Strategic Implications

This move appears to be part of DEN Networks' strategy to streamline its operations and focus on core, revenue-generating assets. By divesting non-operating subsidiaries, the company may be aiming to optimize its corporate structure and resource allocation.

About the Buyer

Infomedia and Networking Private Limited (INPL), the acquirer of these stakes, is described as:

• Incorporated under the Companies Act, 1956
• Engaged in the Cable and Broadband business
• Not affiliated with DEN Networks' Promoter/Promoter Group or group companies

Regulatory Compliance

DEN Networks has emphasized that these transactions do not fall under the category of related party transactions, ensuring compliance with regulatory requirements.

The company received the intimation from FMEL at 3:35 p.m. (IST) on the day of the transaction, promptly disclosing the information as per the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

While the divestment sum of ₹30 may seem nominal, it's important to note that this decision aligns with the non-operational status and financial position of the divested entities. Investors and market observers will likely be keen to see how this strategic move contributes to DEN Networks' overall operational efficiency and future growth plans in the competitive cable and broadband sector.

Den Networks , a prominent player in the Indian cable TV industry, has successfully challenged and overturned a substantial tax demand of ₹332.6 million. This development marks a significant victory for the company in its ongoing efforts to manage its financial obligations effectively.

Tax Demand Details

The tax demand in question was initially imposed by the Joint Commissioner (ADJN), Central Tax and Central Excise, CGST Kochi Commissionerate. It comprised the following components:

The Dispute

The crux of the dispute lay in the interpretation of the taxable base for Goods and Services Tax (GST). The tax authorities had contended that:

1. GST was payable on the gross amount charged by Local Cable Operators (LCOs) from subscribers.
2. This was in contrast to Den Networks' stance that tax should be levied on the amount they charged from the LCOs.

Appeal and Resolution

Den Networks appealed against the original order dated February 3, 2025. The appeal was heard by the Commissioner (Appeals), Central Tax and Central Excise, Kochi. In a favorable ruling for Den Networks, the Appellate Authority:

1. Accepted the company's contention
2. Set aside the original order in its entirety
3. Quashed the demand for GST, interest, and penalties against Den Networks

The company received the copy of the Appellate Authority's order on October 29, 2025, at 5:30 p.m. (IST), marking the formal conclusion of this tax dispute.

Implications

This ruling is significant for Den Networks as it:

1. Eliminates a substantial financial liability
2. Validates the company's interpretation of GST applicability in its business model
3. May set a precedent for similar cases in the cable TV industry

The successful resolution of this tax dispute demonstrates Den Networks' ability to navigate complex regulatory challenges and reinforces its financial position in the competitive cable TV market.

As the industry continues to evolve, such regulatory clarifications play a crucial role in shaping the financial landscape for cable TV operators and their relationships with local cable operators and subscribers.