TV Today Network has announced that the board of directors have approved a proposal for investment of Rs 9.40 crore in Vibgyor Broadcasting, a wholly-owned subsidiary of the company, by way of subscription towards Rights Issue.
In a regulatory filing, the company stated that Vibgyor being a wholly owned subsidiary is a related party of the Company. The Company will subscribe to the rights issue of Vibgyor and as per Regulation 2(1)(za) of SEBI Listing Regulations, the same is exempt from the definition of related party transaction.
The promoter/promoter group of the Company have interest in Vibgyor to the extent of their holding in the Company, it stated.
The objective of the investment is to ensure that the wholly owned subsidiary has requisite net worth to meet the requirement of the Ministry of Information and Broadcasting. Government of India for being eligible to purchase the radio business from the Company.
As per the company, no governmental or regulatory approval is required for subscription to the Rights Issue of Vibgyor. The process of Rights Issue is to be complete within 60 days.
