Den Networks jumps on getting FIPB approval for hiking FII limit

Den Networks rose 3.99% to Rs 132.90 at 9:24 IST on BSE after the company said it received the Foreign Investment Promotion Board's approval for raising foreign investment limit in the firm.

The announcement was made after market hours yesterday, 20 August 2015.

Meanwhile, the BSE Sensex was down 463.68 points, or 1.68%, to 27,144.14.

On BSE, so far 3,460 shares were traded in the counter, compared with an average volume of 25,809 shares in the past one quarter.

The stock hit a high of Rs 136.95 and a low of Rs 129.10 so far during the day. The stock hit a 52-week high of Rs 188.75 on 16 October 2014. The stock hit a 52-week low of Rs 100.10 on 4 February 2015.

The stock had underperformed the market over the past one month till 20 August 2015, falling 21.28% compared with 2.86% fall in the Sensex. The scrip had also underperformed the market in past one quarter, falling 15.25% as against Sensex's 0.82% decline.

The small-cap company has an equity capital of Rs 178.20 crore. Face value per share is Rs 10.

Den Networks said it received approval of the Foreign Investment Promotion Board (FIPB) for increase in foreign investment limit in the company upto 74% from current 49% by foreign institutional investors (FIIs), non resident Indians (NRIs), foreign portfolio investors (FPIs) and other eligible foreign investors through route of secondary market/open market purchase. The approval is subject to compliance of conditions specified in consolidated FDI Policy circular dated 12 May 2015.

On a consolidated basis, Den Networks reported net loss of Rs 51.89 crore in Q1 June 2015 as against net profit of Rs 1.12 crore in Q1 June 2014. Net sales declined 11.34% to Rs 264.54 crore in Q1 June 2015 over Q1 June 2014.

Den Networks is India's leading cable TV distribution company reaching an estimated 13 million households in over 200 cities across 13 key states in India.

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