Den Networks, Hathway Cable drop up to 8% as OFSes by RIL kick off

0
14
Den Networks, Hathway Cable drop up to 8% as OFSes by RIL kick off


NEW DELHI: Shares of Den Networks and Hathway Cable plunged up to 8 per cent after promoter Reliance Industries kicked off its offer for sale (OFS) to pare stake in the two companies to comply with minimum public shareholding norms.

The two-day OFS by India’s most valuable company by market capitalisation to sell partial stake in the two companies opened for non-retail investors on Friday. Retail investors can look to participate in the issue on Tuesday. Indian market would be shut on Monday on account of Holi.

Following the development, shares of Den Networks fell 6.56 per cent to hit a low of Rs 51.20 on BSE. Shares of Hathway Cable declined 8.04 per cent to hit a low of Rs 26.30.

Reliance Industries had acquired the two companies in 2018 through its subsidiaries.

Jio Futuristic Digital Holdings, Jio Digital Distribution Holdings and Jio Television Distribution Holdings together will sell 55.5 million shares, or 11.63 per cent stake, in Den Networks at a floor price of Rs 48.50 per share, at a discount of 10.8 per cent to Thursday’s closing price of Rs 54.40, exchange filings showed.

Promoters held 86.53 per cent stake in the Den Network as on December 31, 2020.

Hathway Cable promoters, who hold 94.09 per cent stake, will sell 338 million shares, or 19.09 per cent stake, in the company at a floor price of Rs 25.25 per share. This suggests a discount of 11.7 per cent to Thursday’s closing price of Rs 28.60.



Source link

LEAVE A REPLY

Please enter your comment!
Please enter your name here