DEN to network with more FIIs!

In this otherwise lackluster market, Den Networks is hogging all attention. Currently the top gainer on the BSE, the stock is up 8% at Rs.125 levels. Volumes are huge – as against a thinly traded two-week average of less than 4000 shares, today morning alone saw some 76,000 shares have changed hands.

This sudden spiking up of interest in Den is thanks to RBI. Yesterday, it allowed foreign investors to raise their stake up to 74% in the company. In a notification, RBI stated, “Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 74 per cent of the paid up capital of DEN Networks Limited under the Portfolio Investment Scheme (PIS)."

This decision was made after the company’s Board passed resolutions and shareholders approved a special resolution for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs. As at 30th Sept 2015, FIIs held 22.79% stake in the company.

DEN will declare its Q2FY16 numbers on 3rd Nov.