NDTV market value swells after cash infusion via rights issue

New Delhi: New Delhi Television has completed the allotment under its rights issue, issuing 4,83,53,450 equity shares at Rs 82 per share. The offer carried a face value of Rs 4 and a premium of Rs 78. 

With this, the outstanding equity rises 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, down 5.49% from the previous close of Rs 111.20. 

The full market capitalisation stood at Rs 1,185.79 crore, and a free-float market cap of 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.

For shareholders, percentage ownership is broadly maintained for those who subscribed to their full entitlements. Holders who did not subscribe are diluted because the denominator has increased by 75%; a shareholder who skipped entirely now holds about 57% of the earlier percentage. 

Control at the company remains essentially unchanged as promoters and other large investors are understood to have taken up their entitlements or purchased additional rights; the post-allotment shareholding pattern will confirm the final positions.

On the balance sheet, the increase in paid-up capital records the face-value addition from the new shares, while the balance flows into securities premium. 

Total equity, therefore strengthened by the funds raised net of costs, improving the company’s capital base and financial flexibility. Per-share figures such as earnings per share and dividend per share will be spread over a larger number of shares unless profits and payouts rise proportionately. 

Book value per share will be recalculated after the premium is recognised; if the pre-issue book value per share was below Rs 82, the fresh equity typically lifts the book.

Market capitalisation is now computed on the enlarged share base. At the closing price of Rs 105.10 and 11.28 crore shares outstanding, it works out to about Rs 1,185.79 crore.