New Delhi, Sept. 29
Deccan Chronicle Holdings Ltd has sought permission from the Foreign Investment Promotion Board (FIPB) to allow foreign holding in the company up to 24 per cent.
According to the foreign investment guidelines, a company in the print media can have a maximum of 26 per cent foreign investment including both direct and indirect investments.
The company has sought permission to allow foreign investors to invest in the company by directly buying from the market. The company had come out with an initial public offering in 2004 and currently around 22 per cent stake in the company is held with the public.
In 2005, the company came out with a foreign currency convertible bond (FCCB) that would account for 10 per cent equity in the company if the bondholders convert them into equities. The FCCB had been listed in Singapore and due date is 2010.
Now, it has sought FIPB permission to allow foreign investors including NRIs, PIOs and portfolio investors to invest in the company by way of acquisition of the company shares from the stock exchanges up to a limit of 14 per cent.
The company has also informed the Government that there would be no change in the board of directors and the key executives of the control and editorial control will continue to be in the hands of the existing management, sources said.
The company's shares closed at Rs 481 on the BSE and Rs 476.40 on the NSE on Friday.