The Hindu Business Line : NDTV plans to pump in $130-160 m FDI thru group co

The Foreign Investment Promotion Board's approval sought to invest in five cos — NDTV Imagine, NDTV Lifestyle, NDTV Labs, NDTV Convergence and NDTV Media Services.

New Delhi , Jan. 17

The NDTV Group has sought Government approval for pumping in $130-160 million in the form of foreign direct investment (FDI).

The money will be routed through the Group's London-based subsidiary NDTV Networks Plc, incorporated by NDTV under the laws of England.

The subsidiary would raise funds in the overseas market, particularly through listing on the Alternative Investment Market (AIM) segment of the London Stock Exchange, the company has informed the Government.

NDTV Networks has sought approval from the Foreign Investment Promotion Board (FIPB) to invest in five Indian companies of the Group, namely, NDTV Imagine, NDTV Lifestyle, NDTV Labs, NDTV Convergence and NDTV Media Services. It has also sought permission for uplinking from India, sources said.

According to the plans, out of the total FDI proposed to be pumped in to the various Indian companies, $106 million would be invested into NDTV Imagine, which would be operating a non-news Hindi mass entertainment channel for Indian viewers and will also be distributed in North America, Canada, the UK, West Asia and South Africa.

FDI to the tune of $25.23 million is proposed to be pumped into NDTV Lifestyle, which would be engaged in the business of content production for TV channels dedicated to travel, food, fashion, shopping and health and wellness in India and abroad.

The remaining portion is proposed to be invested in the other three companies.

The application filed with the FIPB by NDTV Networks Plc further proposes that NDTV would hold the share capital of the London-based company through a wholly owned subsidiary NDTV Networks BV, having its registered office in Mauritius. Thus, at present, the entire shareholding of the London-based company would be directly or indirectly held by NDTV, the company has informed the FIPB.

M&A activities

The company has also informed the FIPB that the London-based subsidiary will be spearheading the Group's global merger and acquisition activities and will be the main vehicle for participating as a strategic partner with local players in various countries and would be managed by a strategic team based in Europe, sources said.

The FIPB would decide on the proposal based on the inputs given by the Ministry of Information & Broadcasting, which is the administrative Ministry for the sector, they added.

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