Den Networks moves higher after increasing stake in Macro Commerce

Den Networks rose 3.18% to Rs 92.40 at 11:41 IST on BSE after the company said it has entered into an agreement with Jasper Infoteeh for increasing equity stake in Macro Commerce by subscribing and purchasing its shares for Rs 6 crore.

The announcement was made after market hours on Friday, 15 July 2016.

Meanwhile, the S&P BSE Sensex was up 157.17 points or 0.56% at 27,993.67.

On BSE, so far 33,000 shares were traded in the counter as against average daily volume of 17,407 shares in the past one quarter. The stock hit a high of Rs 94.70 and a low of Rs 90.25 so far during the day. The stock had hit a 52-week high of Rs 169 on 20 July 2015. The stock had hit a 52-week low of Rs 60.50 on 15 February 2016. The stock had underperformed the market over the past one month till 15 July 2016, gaining 0.11% compared with Sensex's 4.15% rise. The scrip had also underperformed the market in past one quarter, sliding 4.38% as against Sensex's 8.62% rise.

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

Den Networks has entered into an agreement with Jasper Infotech for purchase of shares worth Rs 1 crore in Macro Commerce (Macro) and subscription by way of rights issue totaling Rs 5 crore.

Den Networks currently holds 32.87% stake in Macro and post acquisition it will increase to 82.87%.

Macro reported turnover of Rs 28 crore in the financial year ended 31 March 2016.

On consolidated basis, Den Networks reported net loss of Rs 85.44 crore in Q4 March 2016, higher than net loss of Rs 62.08 crore in Q4 March 2015. Net sales rose 38.3% to Rs 361.76 crore in Q4 March 2016 over Q4 March 2015.

Den Networks is one of leading cable TV distribution companies in India.

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