GTPL Hathway yesterday in a BSE filing stated that it would be undertaking the demerger of its Digital TV business undertakings of multiple wholly-owned subsidiary companies which will also see the capital reduction of few subsidiary companies as an integral part of the scheme.
As a result of the demerger, GTPL Deesha, GTPL TV Tiger, GTPL Meghana, SCOD18, GTPL Anjali, GTPL Video Vision, GTPL Vidarbha, GTPL Surat, and GTPL Blue Bell will be demerged into GTPL on a going concern basis while GTPL Anjali, GTPL Vidarbha, GTPL Deesha, GTPL TV Tiger, SCOD18 will see a capital reduction as a result of the transfer of demerged undertakings as an integral part of the scheme and amalgamation of GTPL City Channel and GTPL Shivshakti with GTPL on a going concern basis.
The transactions is being done at arm’s length given all the parties are related to GTPL. The demerged companies are wholly-owned companies and not divisions of the listed entity which primarily engage in the business of television channels through a digital cable distribution networks.
The consolidation of cable TV distribution business by GTPL will help the company to have focus management and attention for the cable TV distribution as it consolidates into a single entity. This will streamline the operating structure with greater efficiencies in operations with optimum utilization of resources.