How much did NDTV’s market value rise after the rights issue?

New Delhi: NDTV’s market value rose by about Rs 498 crore after its rights issue, moving from roughly Rs 687.6 crore before allotment to about Rs 1,185.8 crore at Friday’s close on the enlarged equity base.

The company completed the allotment of 4,83,53,450 equity shares at Rs 82 per share, comprising a face value of Rs 4 and a premium of Rs 78. With this, the outstanding equity increases from 6,44,71,267 to 11,28,24,717 shares and the paid-up capital moves from Rs 25.79 crore to Rs 45.13 crore. 

Gross proceeds are about Rs 396.5 crore before expenses.

On the BSE at 4 pm on Friday, the stock settled at Rs 105.10 against a previous close of Rs 111.20. On the expanded share count of 11.28 crore, the closing price implies a full market capitalisation of about Rs 1,185.79 crore and a free-float market cap of about Rs 418.41 crore.

The rights offer ran from September 22 to October 8 in the ratio of three shares for every four held on the September 12 record date. 

Shareholder percentages are broadly maintained for those who subscribed in full, while holders who did not subscribe are diluted as the share count has increased by 75%. Control is expected to remain stable, with the post-allotment shareholding pattern to confirm final positions.

On the balance sheet, the face-value component lifts share capital and the balance is credited to securities premium, strengthening total equity by the funds raised net of costs. Per-share figures such as earnings per share and dividends will be spread over a larger number of shares unless profits and payouts rise proportionately. 

Book value per share will be reset once the premium is recognised; if the pre-issue book value per share was below Rs 82, the infusion typically lifts it.