New Delhi Television (NDTV) , a prominent Indian media company, has announced a significant rights issue to raise up to ₹396.50 crore. The company's Board of Directors approved the issuance of fully paid-up equity shares, marking a strategic move to strengthen its financial position.

Rights Issue Details

The rights issue, approved by NDTV's Board, offers existing shareholders the opportunity to purchase additional shares at a preferential rate. Key details of the rights issue include:

• Issue Size: 4,83,53,450 Rights Equity Shares
• Face Value: ₹4.00 per share
• Issue Price: ₹82.00 per Rights Equity Share (including a premium of ₹78.00 per share)
• Rights Entitlement Ratio: 3 new shares for every 4 shares held
• Record Date: September 12

Timeline and Process

The rights issue is set to follow a structured timeline:

• Credit of Rights Entitlements: September 16
• Issue Opening Date: September 22
• Last Date for On-Market Renunciation: October 3
• Issue Closing Date: October 8

Shareholders are advised to complete off-market transfers of Rights Entitlements before the Issue Closing Date.

Impact on Share Capital

The rights issue will significantly impact NDTV's share capital structure:

*Post-Issue figure assumes full subscription

Fractional Entitlements

For shareholders with holdings not in multiples of 4, fractional entitlements will be ignored in Rights Entitlement calculations. However, these shareholders will receive preferential consideration for allotment of one additional share if they apply for extra shares beyond their entitlement.

Strategic Implications

This rights issue represents a significant move for NDTV, potentially providing the company with additional capital for growth initiatives, debt reduction, or operational improvements. The successful completion of this rights issue could strengthen NDTV's financial position in the competitive media landscape.

Investors and market watchers will be closely monitoring the uptake of this rights issue, as it could indicate shareholder confidence in NDTV's future prospects and strategic direction.

As the media industry continues to evolve rapidly, NDTV's decision to raise capital through this rights issue may be seen as a proactive step to ensure it remains well-positioned in the market.

Shareholders and potential investors are advised to review the detailed terms and conditions in the Letter of Offer, which will be filed with the Securities and Exchange Board of India, BSE Limited, and National Stock Exchange of India Limited.

New Delhi Television (NDTV) , a leading entity in news broadcasting and digital journalism, has taken a significant step towards strengthening its financial position and fueling growth initiatives. The company's Board of Directors has approved a rights issue of up to ₹400 crore, marking a pivotal moment in NDTV's strategic expansion plans.

Rights Issue Details

The Board of Directors, in a meeting held on September 2, gave the green light for issuing fully paid-up equity shares with a face value of ₹4 each. The rights issue, not exceeding ₹400 crore, will be offered to eligible shareholders as of a yet-to-be-determined record date. This move is subject to necessary regulatory and statutory approvals.

Strategic Objectives

The capital raised through this rights issue is earmarked for several key objectives:

1. Distribution Expansion: NDTV aims to widen its domestic and international presence.
2. Brand Building: Investments will be made to strengthen the NDTV brand.
3. Debt Reduction: A portion of the funds will be allocated to reduce the company's debt.
4. Growth Initiatives: The company plans to develop new intellectual properties and pursue other growth opportunities.

Digital-First Growth Strategy

NDTV is focusing on a digital-first growth strategy, which includes:

• Branded content development
• Data-driven advertising
• Partnerships with global platforms to expand reach
• Exploration of regional language news
• International broadcasting through NDTV World
• Live events

Management's Perspective

Rahul Kanwal, CEO and Editor-in-Chief of NDTV, commented on the rights issue: "This rights issue is a decisive step in strengthening NDTV and preparing it for its next phase of growth. With the resources we raise, we will expand our reach and deepen our impact while staying true to the kind of journalism we have always stood for - credible, trustworthy, and uncompromising."

Company Background

NDTV, incorporated in 1988, operates as a division of AMG Media Networks Limited, a wholly-owned subsidiary of Adani Enterprises Limited. The company is engaged in news broadcasting and digital journalism, with television channels and digital platforms distributed both in India and internationally.

Next Steps

The specific terms of the rights issue, including the issue price, rights entitlement ratio, record date, and timing, will be determined by the Board and/or the Rights Issue Committee. These details will be disclosed to the stock exchanges in due course.

As NDTV embarks on this significant financial move, the media landscape in India may see renewed competition and innovation. The success of this rights issue could potentially reshape NDTV's position in the market and its ability to deliver news content across various platforms.