Den Network spurts 10% as board decides on preferential issue

NEW DELHI: Shares of Den Network saw a 10 per cent spurt in Friday’s trade after the company said the board members would discuss and approve the proposal for preferential issue of equity shares next Tuesday.

Following the news, the stock surged 9.99 per cent to hit a high of Rs 79.80 on BSE. At prevailing price, the scrip is trading below 14-day, 50-day and 200-day simple moving averages, data available with database Capitaline suggests.

The company reported a net loss of Rs 57.31 crore for the June quarter, compared with a Rs 50.75 crore loss during the corresponding quarter last year. Sales for the quarter grew 23.95 per cent to Rs 236.97 crore from Rs 191.18 crore in the same quarter last year.

In FY16, broadband subscribers for DEN Networks grew to 95,000 from 23,000 in FY15. For peer Hathway Cable & Datacom subscriber base jumped to 627,200 from 455,800 in FY15, and SITI Cable Network to 132,000 from 60,000, suggesting a growth in broadband penetration.

Den Networks is a cable TV distribution company which also offers broadband services. The company informed BSE that a meeting of the Board of Directors of the Company would be held on September 20, 2016, inter alias, to discuss the preferential share issue.