The Hindu Business Line : Foreign investment up to 49% allowed in Network 18

New Delhi, Sept. 10 Network 18, the holding company of TV 18, has been allowed up to 49 per cent foreign investment, opening up investment opportunities for the company.

Recommending automatic route for the company’s plans to raise Rs 119.63 crore from Mauritius-based SAIF III, the Foreign Investment Promotion Board cleared the ambiguity over the FI limits of the company. Network can now follow up on its proposal to issue 8.76 per cent share to SAIF by way of 9.2 million shares of Rs 130 each.

Network 18 is non-banking financial company registered with the RBI with operations in the entertainment space, through event management business E18, Sports 18 and the film business Studio18. FII stake in the company is currently at 11.64.

As the holding company of TV 18 which runs three news channels – news and current affairs allowing only up to 26 per cent foreign equity – the direct and indirect foreign equity was 24.74 per cent. The FII holding in TV 18 was capped at 19.03 per cent and Network 18 at 13.5 per cent.

With the introduction of Press Note 2, the company had sought clarification on whether as a primarily Indian owned and controlled investing company it could raise foreign investment up to 49 per cent. With a no-objection from the Ministry of Information and Broadcasting, and on meeting certain requirements as an NBFC, Network can now raise up to 49 per cent in foreign investments.

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