Cable TV
RIL to sell stakes in Den, Hathway for Rs 1,122 crore
NEW DELHI: Reliance Industries Ltd (RIL) is getting ready to divest its shares in Den Networks and Hathway Cable through offers for sale (OFS) in compliance with the minimum public holding norms laid down by the Securities and Exchanges Board of India (SEBI).
RIL will sell its stakes in Den and Hathway, acquired through its subsidiaries in 2018, for Rs 853 crore and Rs 269 crore respectively.
According to a BSE filing, Jio Content Distribution Holdings, Jio Internet Distribution Holdings and Jio Cable and Broadband Holdings, promoters of Hathway Cable & Datacom, will sell 338 million shares, or a 19.1 per cent stake with a floor price of Rs 25.25. The promoters currently hold 94.09 per cent stake in Hathway.
Jio Futuristic Digital Holdings, Jio Digital Distribution Holdings and Jio Television Distribution Holdings will sell 55.5 million shares, or an 11.63 per cent stake, in Den Networks with a floor price of Rs 48.50
The OFS will open for non-retail investors on 26 March and for retail buyers on 30 March. In both the offers, 10 per cent of the offered shares are reserved for retail investors.
It may be recalled that in February 2020, RIL had merged Den Networks and Hathway with Network18 and TV18 to consolidate its media and distribution businesses under one umbrella entity.
The multinational conglomerate had acquired a majority stake in Hathway and Den in October 2018. At that time, it had invested around $1 billion to acquire 58.92 per cent and 51.34 per cent stake in Den Networks and Hathway Cable, respectively. Prior to this, Hathway was owned by the Raheja Group and Sameer Manchanda held a majority stake in Den.
MUMBAI: When margins wobble, liquidity talks and in Q3 FY25-26, cash did most of the talking. Den Networks Limited closed the December quarter with consolidated revenue of Rs.251 crore, marginally higher than the previous quarter but down 4 per cent year-on-year, even as profitability stayed resilient on the back of strong cash reserves and disciplined cost control.
Subscription income softened to Rs.98 crore, slipping 3 per cent sequentially and 14 per cent from last year, while placement and marketing income offered some cheer, rising 15 per cent quarter-on-quarter to Rs.148 crore. Total costs climbed faster than revenue, up 7 per cent QoQ to Rs.238 crore, driven largely by higher content costs and operating expenses. As a result, EBITDA dropped sharply to Rs.13 crore from Rs.19 crore in Q2 and Rs.28 crore a year ago, pulling margins down to 5 per cent.
Yet, the bottom line refused to blink. Profit after tax stood at Rs.40 crore, up 15 per cent sequentially and only marginally lower than last year’s Rs.42 crore. A healthy Rs.57 crore in other income helped cushion operating pressure, keeping profit before tax at Rs.48 crore, broadly stable quarter-on-quarter despite the tougher cost environment.
The real headline-grabber, however, sits on the balance sheet. The company remains debt-free, with cash and cash equivalents swelling to Rs.3,279 crore as of December 31, 2025. Net worth rose to Rs.3,748 crore, while online collections accounted for 97 per cent of total receipts, underscoring strong cash discipline across operations, including subsidiaries.
In short, while Q3 showed signs of operating strain, the financial backbone remains solid. With zero gross debt, steady profits and a formidable cash war chest, the company enters the next quarter with flexibility firmly on its side proving that in uncertain markets, balance sheet strength can be the best growth strategy.
