Mid-Day Multimedia Ltd. has, on the advice of its merchant bankers, decided not to accept any bids or allot any shares to foreign institutional investors (FIIs) in the current public issue.
Mid-Day, in consultations with its merchant bankers, is also in talks with the Ministry of Information & Broadcasting and the Ministry of Finance to resolve the dispute over investment by FIIs in its issue.
While the Reserve Bank of India (RBI) has allowed FII investment in the Mid-Day issue, going by the regulations under Foreign Exchange Management Act (Fema), 1999, the I&B ministry, citing a 1995 regulation on sectoral restrictions, has asked RBI to explain its approval.
The company is planning to raise Rs 50 crore through the book-built process at a face value of Rs 10 each. The proceeds of the issue will be deployed in expanding its publishing business.