Reliance Industries plans to sell stakes in its cable distribution platforms Hathway Cable and Datacom and DEN Networks to comply with SEBI's minimum public holding norms. The conglomerate plans to sell stakes for Rs 853 crore and Rs 269 crore in Hathway and DEN respectively through an offer for sale (OFS).
Jio Futuristic Digital Holdings Private Limited, Jio Digital Distribution Holdings Private Limited, and Jio Television Distribution Holdings Private Limited being part of the promoter & promoter group of the company will sell an 11.63% stake in DEN and a 19.09% stake in Hathway.
The promoter and promoter group holds 94.09% and 86.53% stakes in Hathway and DEN respectively.
The promoters propose to sell in aggregate up to 33,79,83,855 equity shares representing 19.09% of the total issued and paid-up equity share capital of DEN at a floor price of Rs 48.50 per equity share totalling Rs 269.18 crore. In Hathway, the promoters propose to sell in aggregate up to 5,54,85,048, representing 11.63% of the total issued and paid-up equity share capital at a floor price of Rs 25.25 per equity share totalling Rs 853.45 crore.
The sale will take place over two trading days. For non-retail investors, the sale will take place on 26th March while for retail investors and for Non-Retail Investors who choose to carry forward their un-allocated bids from T Day the sale will take place on 30th March.
The sellers have appointed Morgan Stanley India Company and Axis Capital Limited as the ‘Sellers’ Brokers’ and BSE has been declared as the designated stock exchange (“DSE”). The Sellers have already deposited the Sale Shares with the NSE Clearing Limited being the clearing corporation of NSE.
Pending regulatory approval, Reliance plans to consolidate its media and distribution business spread across multiple entities into Network18. Under the scheme of the arrangement, TV18 Broadcast, Hathway Cable & Datacom, and DEN Networks would merge into Network18.
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