Sri Adhikari Brothers Television Network (SAB TV) is in advanced stages of talks to rope in a strategic investor.
As a precursor to this, the company's board has decided to increase its authorised capital by 50 per cent, from 10 million equity shares having face value of Rs 10 each to 15 million equity shares. The board has also cleared the issue of 26.2 lakh convertible warrants to the core promoters.
Consequently, the promoter's holding will increase from 44 per cent to 57 per cent after the conversion of warrants. This will essentially mean that the promoters are pumping in additional Rs 40-45 crore into the company.
The move has also gone down pretty well in the market, as the increase in authorised capital will enable the company to get a strategic partner by issue of additional capital or off-loading part of the stake by the existing promoters.
Source: Business Standard