The following is calculated speculation:
If you look at the fact that they were not given permissions to acquire Reliance Broadcast(Promoters in the conference call indicated that the regulators weren’t going to give them the permission) and also the fact that NCLT permissions are being delayed quite a bit. This could be related to the critical coverage of Covid handling. There were raids on DB Group after similar critical reporting. Maybe the people in Delhi are not very happy with the group. Thus it is unfair to blame it on the promoters who have a spotless reputation and are doing a corporate maneuver for the benefit on minority shareholders never been done before.
2 Likes
any update on NCLT ?
I sense good news around the corner, case was heard last Friday and passing of final order is awaited.
1 Like
thank you , the trading screen also saying same, suddenly buying has started. Usually how many days will now take for final order ?
1 Like
Company has just come out with the exchange disclosure - The NCLT has today approved the NCRPS scheme.
2.5 years of patience has finally been rewarded for shareholders.
4 Likes
Lets assume, the recovery would be better in Q3 as in past due to festive season.
Q4 would have more govt ad spending (year end closure) and education spending for admissions. we may see positive PAT.
NCPRS also closed and it would be matter of days for the Record date announcement ( or shareholder approval / any approval is due?).
Technically 25 - (12*25%)= 22 would be stock adjustment in Exdate of NCPRS. But market may discount at absolute level also. We cant predict collective wisdom here.
I believe, Dividend payout would start happen or buyback would happen post NCPRS. Company did not reward shareholder since listing (except bonus of 1:4 in 2020).
Holding with frustration against NCLT mumbai. (NCLT chennai cleared Sundaram Clayton hearing in 2nd time). Mumbai branch must be crowded for time slot.
Finally record date for bonus
Hi , can you shed a light on what will happen next and in what ratios
In simple words if u invest 100 shares now at 2500 rs u will get 1000 rs pref shares as bonus with 200 rs maturity interest on redemption after 36 months ie 1200 rs total. It’s only for public share holders. Promotor are not taking it
2 Likes
Record Date is Jan 13, 2023
So ex date is Jan 12. Whoever is buying till Jan 11 will be eligible for NCPRS.
1 Like
“From the above announcement to stock exchange, found the below statement:
In terms of the Scheme, the Company will issue and allot by way of bonus, 1 (one) fully paid-up
NCRPS of the face value of INR 10 each at the premium of INR 90 each, for every 10 (ten) fully
paid-up equity share of face value of INR 2 each, to the non-promoter shareholders of the
Company whose names appear in the Register of Members of the Company as on the Record
Date.”
from one of the press release of this Company: https://www.radiocity.in/images/uploads/pdf/PressRelease.pdf
found the below statement:
“the board has approved a bonus issue of non-convertible non-cumulative redeemable preference shares (NCRPS) of Rs.100/- each in the ratio of 1:10 i.e. {1 (One) bonus NCRPS for every 10 (Ten) equity share held} by non-promoter shareholders. These are redeemable on expiry of 36 months at a premium of Rs.20/- and are proposed to be listed.”
=> face value of these NCRPS = 10.00
and they will be redeemed at a premium of 20, which amounts to (10 + 20) = 30 per preference share 36 months later.
A shareholder holding 10 shares will receive 1 NCRPS which entitles the shareholder to receive Rs. 30 after 36 months.
so, the benefit for minority shareholders in my opinion is 30/10 = 3 per share 3 years later.
It is not 12 rupees per share as mentioned in earlier posts in the thread in my view.
Read page 6 . It’s 10 rs preference shares + 90 premium +20 rs premium on redemptions
Written to company secretary & received this reply .
The NCRPS are being issued in the form of Bonus in the ratio of 1:10 ie, against 10 equity shares 1 NCRPS will be issued, to the non-promoter shareholders, further the face value of these shares is Rs 10/- each issued at the premium of Rs 90/- each which shall be redeemable at Rs 120/- per NCRPS after 36 months from the date of allotment. Also, these shares will be listed at NSE and BSE and will be tradeable in the market.
Hope this shall suffice your query.
Thanks & Regards,
Arpita Kapoor
Company Secretary and Compliance Officer
Music Broadcast Ltd.
4 Likes
Thanks Hemant.
From the wordings in all the documents released by the company, that was my interpretation(redemption @ 30).
However after seeing the response from Company Secretary you posted, this is clarified (redemption @ 120).
1 Like
How would the bonus shares be taxed?
I understand that these are preference shares which are being issued as a bonus and not preference shares and therefore the taxation may differ at the time of issuance of preference shares.
This is in T+1 settlement cycle so ex-date is same as record date. Whoever buys today will also get the preference shares. Price has not corrected today, as can be seen.
1 Like
How much technical price correction done by by exchange on closing price?
If today’s closing price is X Rs then what shall be technical price band tomorrow ?
Anyone still tracking this? Any reason for the continuous fall in price (< 10 now) post the bonus preference issue.
Are the bonus pref received in dmat?
Does anybody know why promoters didn’t take NCPRS for themselves ? Is it only for the benefit of minority shareholders or is there anything more to it than meets the eye ?
2 Likes