Network 18, TV18 slip 5% on rights issue

Shares of the Network 18 Media & Investments, TV18 Broadcast slipped more than 5% on Monday after both the companies approved for a rights issue.

The shares of the Network 18 was seen trading lower by 6.56% and TV18 lower by 7.44% on BSE at 12.00 pm IST.

Network18 board has approved a rights issue ratio of 307 shares for every 50 shares. Also, TV18's rights issue ratio will be 41 shares for every 11 shares.

Network 18 is promoter and majority shareholder of TV 18.

For Equity Shares being offered on a rights basis under this Issue, the fractional entitlement of such Equity Shareholders shall be ignored for computation of the Rights Entitlements, the companies said in the filing.

However, Equity Shareholders whose fractional entitlements are being ignored will be given preference in the allotment of one additional Equity Share each, if such Equity Shareholders have applied for additional Equity Shares over and above their Rights Entitlement, added further.

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