MUMBAI: Raghav Bahl has taken the next big step to infuse capital into his two debt-laden leading companies and fund the acquisition of Hyderabad-based ETV that would help him spread his media empire into the fast-growing regional markets of India with the support of cash-rich Reliance Industries Ltd (RIL).

After getting the Sebi nod for going ahead with the rights issue, Network18 Media & Investments Ltd and TV18 Broadcast Ltd on Friday fixed the the price of their rights issues at a discount to their closing prices to raise Rs 26.99 billion each.

Network18 is offering 307 shares for every 50 shares at a price of Rs 30 per share, a discount of 5.66 per cent to its closing price of Rs 31.80 on the National Stock Exchange (NSE).

TV18 is offering 41 shares for every 11 shares held at a price of Rs 20 per share, a discount of 4.76 per cent to its closing price of Rs 21 on the NSE.

Since Network18 group owns 59.76 per cent of TV18, the net capital raised from the rights issues will be Rs 43.12 billion.

The funds to be raised from the rights issues are meant for TV18?s acquisition of ETV news and general entertainment channels, except the Telugu GEC from Reliance Industries Ltd (RIL) for Rs 21 billion. RIL will fund the Network18 promoter companies for subscribing to the rights issues and in exchange will get optionally convertible debentures issued by the promoter companies.

RIL will lend a minimum of Rs 17 billion through investments in optionally convertible debentures. If none of the non-promoter shareholders subscribe to the rights issue, RIL will have to lend Rs 43.12 billion to Network18 promoters to ensure both the rights issues go through.

The record date for Network18 shareholders is 12 September and for TV18 shareholders is 17 September. The Network18 rights issue will open on 18 September 18 and close on 4 October, while that of TV18 will open on 25 September and close on 15 October.

Both the issues are huge compared to their market capitalisation as of Friday. Network 18?s rights issue is nearly six times its market capitalisation of Rs 4.61 billion and that of TV18 is nearly 3.5 times the market capitalisation of Rs 7.78 billion.