NDTV rights issue oversubscribed; bids top offer on penultimate day

New Delhi: New Delhi Television’s rights issue drew demand in excess of supply on the penultimate day, but the total funds raised will remain capped at the offer size of about Rs 396.5 crore.

Exchange data at 5:03 pm on October 7 showed cumulative ASBA bids of 4,97,52,468 shares against the issue size of 4,83,53,450 shares, an oversubscription of roughly 103%. The BSE’s own ASBA counter reflected 4,59,38,804 shares at the same time. The issue closes today.

Also read: NDTV rights issue: Promoter cheque lands, bids jump to 76% with two days to go

NDTV is issuing up to 4.84 crore equity shares at Rs 82 apiece (face value Rs 4) in a 3-for-4 offer to shareholders of record on September 12. At full subscription, the company will raise Rs 3,964.98 million.

Because a rights issue fixes both price and quantity, the mop-up cannot exceed this amount even if bids are higher; excess applications over entitlement are allotted on a proportionate basis, with unallotted money refunded after costs.

Also read: NDTV rights issue: Retail bids pick up pace, here’s what it means for ownership

The late surge in demand follows a steady build-up through the week. At Tuesday’s close, NDTV’s last traded price on the BSE was Rs 114.60, implying a discount of about 28% to the rights price.

KFin Technologies is the registrar to the issue. Category-wise take-up and pro-rata allotments will be finalised after the window shuts this evening, with net proceeds marginally lower than the gross amount after issue expenses.