News Broadcasting
NDTV’s Rs 1billion IPO to fund working cap, prepay loan
MUMBAI: Dr Prannoy Roy’s NDTV is gearing up for its first Rs 1 billion equity issue in the primary market. The news broadcaster has filed its draft red herring prospectus with the Securities and Exchange Board of India (Sebi).
Funds deployment
Funds deployment towards:
(Rs in million)
Activity
Pre-payment of loans
Working Capital
General corporate purposes
Total
FY 2005
200
200
150
550
According to the draft prospectus, the net proceeds raised from the issue would be deployed towards “working capital requirements, repayment of loans and for general corporate purposes.” Net proceeds from the sale of existing shares (5.9 million shares of face value of Rs 4 each) will be paid to the selling shareholders.
While the working capital requirement arises primarily from sundry debtors relating to credit given to advertisers, security deposits and advance income tax, the 200 million outstanding loan is part of the total outstanding term loan of Rs 300 million. The prospectus does not mention specifics about the general corporate purposes requirements.
Issue allocation
The issue is being made through the 100 per cent book building route where at least 60 per cent of the issue will be allocated on a discretionary basis to qualified institutional buyers (QIBs). At least 15 per cent of the issue will be available for allocation on a proportionate basis to non-institutional bidders and the remaining 25 per cent of the issue will be available for allocation on a proportionate basis to retail bidders.
The present shareholding pattern of the company is
Present Shareholding pattern of NDTV
Category
No of equity shares
%
Promoters
Indian Funds/MFs
FIIs
Foreign Investors
Others
Public
Total
33,306,600
10,906,065
4,892,375
2,037,025
75
–
51,142,140
65.12%
21.32%
9.57%
3.99%
0.00%
–
100.0%
NDTV’s net worth as of 31 March 2003 and nine months period ended 31 December 2003 was approximately Rs 1.199 billion and Rs 1.285 billion respectively.
For the nine months period ended 31 December 2003, the company posted a net loss of Rs 473.77 million. The book value per share of Rs 4 each, as of 31 March 2003 and nine months period ended 31 December 2003 was approximately Rs 28.52 and Rs 27.16, respectively.
Both of the above – the net worth and the book value per share as on 31 December 2003 will be lower once the Delhi High Court approves the proposed amalgamation of NDTV World Limited with NDTV, which will become effective from 1 April 2003.
As on 31 December 2003
Net worth Rs 1.285 b
Book value per share Rs 27.16
Net asset value per share Rs 67.91
EPS Rs 25.02
Returns on net worth 36.85 %
The net asset value per share as on 31 December 2003 stands at Rs 67.91 while the earnings per share (EPS) is at a negative of Rs 25.02. The returns on net worth are also at a negative 36.85 per cent.
The news broadcaster claims it had 249 advertisers on its two news channels – NDTV 24×7 and NDTV India during the nine months ended 31 December 2003.
The book running lead managers to the issue are JM Morgan Stanley Pvt Ltd, Kotak Mahindra Capital Company Ltd and ICICI Securities Ltd.
The NDTV shares would be listed on The Mumbai Stock Exchange, and the National Stock Exchange.
News Broadcasting
BBC to cut up to 2,000 jobs in biggest overhaul in 15 years
Cost pressures and leadership change drive major workforce reduction plan
LONDON: BBC has unveiled plans to cut up to 2,000 jobs, roughly 10 per cent of its global workforce, in what marks its biggest downsizing in 15 years.
The announcement was made during an all-staff meeting led by interim director-general Rhodri Talfan Davies, as the broadcaster moves to tackle mounting financial pressures and reshape its operations.
Between 1,800 and 2,000 roles are expected to be eliminated from a workforce of around 21,500. The cuts form part of a broader plan to save £500 million over the next two years, aimed at offsetting rising costs, stagnating licence fee income and weaker commercial revenues.
In a communication to staff, BBC interim director-general Rhodri Talfan Davies said, “I know this creates real uncertainty, but we wanted to be open about the challenge,” acknowledging the impact the move would have across the organisation.
The restructuring comes at a time of leadership transition. Former director-general Tim Davie stepped down earlier this month, with Matt Brittin, a former Google executive, set to take over the role on May 18, 2026.
While some cost-cutting measures are being implemented immediately, the majority of the structural changes are expected to roll out over the next few years, with full savings targeted by the 2027–2028 financial year.
The broadcaster had earlier signalled its intent to reduce its cost base by around 10 per cent over a three-year period, warning of “difficult choices” as it adapts to shifting economic realities and audience expectations.
With operating costs hovering around £6 billion annually, the BBC’s latest move underscores the scale of the financial challenge it faces, as it balances public service commitments with the need for long-term sustainability in an increasingly competitive media landscape.
