Hinduja Ventures Q1 FY17 total income up at Rs 60.95 crore

Hinduja Ventures (HVL) has reported total income of Rs 60.95 crore on standalone basis for the first quarter ended June 30, 2016 as against Rs 26.63 crore for the corresponding quarter of the last fiscal. The increase in total income was due to sale of set top boxes/ broking income/ income from trading of securities.

Net profit after tax for Q1 FY17 stood at Rs 24.21 crore, as against Rs 23.90 crore during the quarter ended June 30, 2015. Net profit after tax for the period ended grew by 1.30 per cent.

Scheme of arrangement between Grant Investrade and IndusInd Media & Communication

The Board of Hinduja Ventures noted the scheme of arrangement between Grant Investrade (GIL), the wholly-owned subsidiary of the company and IndusInd Media and Communications (IMCL), a subsidiary of the company, wherein GIL will de-merge its Headend-in-the-Sky (HITS) business undertaking to IMCL. The scheme is subject to consent(s), approval(s) permission(s) of statutory authorities(s), if any, including in particular, the approval from the Ministry of Information and Broadcasting, for transfer and vesting of HITS license held by GIL in favour of IMCL.

The synergy will be able to consolidate HVL’s media investments and would enhance and maximise the shareholders value. The HITS business undertaking of GIL’s merger in IMCL will be a unique first in the country in digital cable and has a long term positive financial implication by increasing competitive strength, technology synergies, customer service efficiency and high productivity with a genuine all India reach. Similar models in developed countries have witnessed a prime leadership position in midterm to long term.

This arrangement will also strengthen HVL’s investment in media business, which will in turn unlock the value of HVL’s shareholders.

This scheme was approved by the Board of Directors of GIL and IMCL at their meetings held on July 21, 2016 and noted in the HVL Board on July 22, 2016.

Conversion of preference shares held in Grant Investrade into equity shares

The Board also approved the conversion of 1,000,000 1 per cent Participatory Redeemable Non-Cumulative Preference Shares of Rs 10 each held in Grant Investrade into equity shares.

GIL will issue its 634,518 equity shares of Rs 10 each against the conversion of 1,000,000 1% PRNCPS.