Network18 Media & Investments Ltd announced that it received approval from the National Company Law Tribunal (NCLT) for its merger with TV18 Broadcast Ltd. You can check the announcement here.
As a result, TV18 Broadcast Ltd.'s shares will be suspended from trading on the stock exchanges from October 16, 2024, and the shares will not be reflected in your holdings on Kite.
As per the scheme of the arrangement, the shareholders of TV18 Broadcast. will receive 100 shares of Network18 for every 172 shares held in TV18 Broadcast.
Any fractional entitlement will be cash-settled and the amount will be credited to the primary bank account.
When will I receive shares of Network18 Media & Investments?
Generally, the credit of shares can take between 30 - 45 days from the record date. You’ll receive an email from CDSL once the shares are credited to the demat account.
When will the allotted shares start trading on the exchanges?
After the shares are credited, the company has to get approval from the exchanges to list the shares. Post the approvals are received the shares will start trading on the exchanges.
What will be the average price for allotted shares of Network18 Media & Investments?
The average price of allotted Network18 shares will be calculated as follows:
Invested value in TV18 Broadcast / The number of Network18 shares received including fractional shares.
For example, if you had invested in 172 shares of TV18 Broadcast at Rs. 50, the invested value would be Rs. 8,600.
If you receive 100 shares of Network18 Media & Investments, the average price will be Rs. 86 (8600 / 100).
The fractional shares are cash settled, and the amount for these will be directly credited to your primary bank account as and when the trustee appointed by the company sells the shares.
What if I hold less than 172 shares of TV18 Broadcast Ltd?
Even if you hold less than 172 shares of TV18 Broadcast, you will receive an allotment of Network18 shares.
For example, if you hold 10 shares of TV18 Broadcast Ltd, your allotment comes at 5.81 shares (10 x 0.5813). 5 Network18 Media & Investments shares will be credited to your demat account. 0.81 will be fractional and the amount for this will be credited to your primary bank account.