NDTV's plan to hike foreign equity in limbo

Foreign Investment Promotion Board is understood to have deferred, two weeks, any decision on NDTV's proposal to offer 34.28 lakh fresh equity shares, aggregating Rs 52.88 crore (Rs 528.8 million), to Mauritius-based Standard Chartered Private Equity, pending clarifications from the information and broadcasting ministry.

NDTV has claimed that with the proposed issue of 34,28,387 shares of Rs 10 each to Standard Chartered Private Equity, Mauritius, foreign equity of the company would go up but would still be within the overall ceiling of 26 per cent.

A clarification has also been sought from the ministry on whether the guidelines for foreign direct investment in publications dealing with news and current affairs would also be applicable to NDTV.

NDTV has stated that as on July 14, 2003, the company has an existing foreign equity up to 16.47 per cent of the total paid up capital comprising 27,71,760 shares of Rs 10 each from reputed international financial investors in terms of approvals issued in 1994.

With a fresh issue of 36,31,011 equity shares to ICICI Bank on July 25 this year, the company's foreign equity has been reduced to 13.56 per cent from 16.47 per cent.