Not long before Rajdeep Sardesai’s exit from NDTV and his subsequent plan to set up a news channel with TV18 made news. TV 18 group is backing this venture with full faith and is even expected to raise Rs 55 crore. The TV18 board has announced that it would consider a proposal to advance the date of outstanding warrants issued by the way of a rights issue in November 2004. The warrants consist of two categories viz Series A and B, with conversion periods of 18 months and 36 months respectively. Each warrant will get converted into one ordinary share of TV18 at a discount of 25 per cent to the prevailing market price.
Haresh Chawla, CEO, CNBC TV 18, said, “The cash we aim to raise through the conversion programme of outstanding warrants will primarily be to fund our expansion plan in the news space leading to the launch of Rajdeep Sardesai-led Broadcast News. The news channel is expected to be launch by yearend.”
The broadcast group after having forayed successfully in business and consumer space, in both English and Hindi languages is now ready to embark upon its next phase of growth and harness opportunities in the general news space. It has attracted a strong, reputed editorial and management team for launching English and Hindi language general news channels. The group believes that it is now uniquely positioned to benefit from this opportunity.
To finance this expansion, the company is now recommending an early conversion of the warrants at the same terms as stated in the Offer Document. The company expects to raise approximately Rs 55 crore from this conversion (based on current market price). The promoters also intend to convert their entire holdings of warrants. The conversion of the warrants will allow the retail shareholders to get TV18 shares at a discount to the market price and is an attractive opportunity to participate in the growth of the company.