MUMBAI: Network18 Media & Investments informed the Bombay stock exchange on the evening of 31 December that Viacom18 India had ceased to be its subsidiary on 30 December and become a direct offshoot of Reliance Industries Ltd (RIL).

This, it said,  happened when RIL converted 24,61,33,682 compulsorily convertible preference shares (CCPS) held by it in Viacom18 into 24,61,33,682 equity shares. Post this conversion, RIL’s equity holding in Viacom18 went up to 83.88 per cent and 70.49 per cent on a fully diluted basis. Network18 ended up with 16.12 per cent of Viacom18’s  total equity share capital and 13.54 per cent on a fully diluted basis. On 14 November, RIL had informed  the exchange that its stake in Viacom18 was at 70.49 pr cent on a fully diluted basis following its acquisition of Paramount’s 13.01 per cent stake (on a fully diluted basis) in it for Rs 4,286 crore. 

AS per the BSE regulatory filing, Viacom18 was a material subsidiary of Network18 with nil turnover and a net worth of Rs 26,928.17 crore (representing 90.39 per cent, of the annual consolidated net worth of  Network18) for the financial year 2023-24.

Network18    received     intimation     from     Viacom18     on 30 December at 7:46 p.m. regarding the allotment of equity shares to RIL pursuant to conversion of CCPS.

The shareholders of Network18 had earlier approved this change of ownership.

With this transition, Viacom18 will now operate under RIL control.