Bennett, Coleman & Co has picked up a 15 per cent equity stake in the Delhi-based Media Video. The Delhi-based video cassette maker informed the Bombay Stock Exchange that it has allotted 2.68 million equity shares to BCCI on a preferential basis at Rs 26 a share.
Prem Adip Rishi, chairman and managing director- Media Video told Business Standard: “Bennett, Coleman as a strategic investor saw the valuation of our company and a potential for future growth. This would also help us diversify into areas of real estate and consumer electronics."
Rishi stated that Bennett, Coleman has currently paid Rs 7 crore and would pick up the rest through the rights issue, which would entail a total investment of Rs 12 crore.
Ravi Dhariwal, executive director with Bennett, Coleman, said the investment by the media conglomerate was more in line with their strategy of swapping equity for advertising.
He stated that Bennett, Coleman would enhance the branding of the company for which it would deploy its multimedia resources.
He also confirmed that Bennett, Coleman would invest in any such company that presents an opportunity such as Media Video.
Last week, BCCL had picked up 6.58 per cent equity stake in Today’s Writing Products Ltd., the maker of writing instruments while it offloaded its entire stake in Mid Day Multimedia.
Media Video is a 19 year old company engaged in the business of manufacturing pre recorded video cassettes, television games and consumer electronic products like LCDs and DVDs. The stock rose by 17 per cent to close at Rs 27.60 today.