MUMBAI: Leading Indian multisystem cable TV operator (MSO) DEN Networks –promoted by Sameer Manchanda- which got its board’s nod to issue another 1.58 crore shares at a price of Rs 90 per share to existing investor Goldman Sachs is now seeking shareholder approval for the same through an extraordinary general meeting to be held on 14 October 2016.

DEN says it will be issuing the preferential shares to Goldman Sachs affiliate firms Broad Street Investments (Singapore) Pte Ltd and MBD Bridge Street 2016 Investments Pte Ltd. The former will subscribe to 1.30 crore shares taking its holding to 4.18 crore shares. Constituting 21.6 per cent of Den Networks equity. The latter will mop up 28.24 lakh shares and a first time investor in DEN its holding will be at 1.46 per cent.

Once completed the preferential share issue will see the promoters’ shareholding falling from 28.52 per cent to 26.19 per cent; corporate bodies from 11.53 per cent to 10.59 per cent; institutional investors from 22.20 to 20.39 per cent; private corporate bodies from 7.30 per cent to 6.71 per cent and finally the holding of foreign bodies will jump from 22.93 per cent to 29.21.

DEN Networks has said it will use the $21 million funds to pare down its debt from Rs 852 crore in June 2016 and also expand its broadband business through its subsidiary. The company’s debt stood at Rs 895 crore in March 2016 and at Rs 930 crore in March 2015. Between 31 March 2016 and June 2016, DEN Networks raised Rs 89 crore in debt and repaid Rs 132 crore.