MUMBAI: Multi system operator (MSO) Den Networks has received clearance from the Foreign Investment Promotion Board (FIPB) to increase its foreign investment limit from the existing 49 per cent to 74 per cent.

As was reported by Indiantelevision.com, on 29 July MSO Hathway Cable and Datacom had received the FIPB approval to up its foreign investment to 74 per cent, whereas Den Networks’ proposal had been deferred. Pertinent to note here is that on 14 July there was buzz that the company had received FIBP nod for the same. However, that was not the case and the MSO finally received the nod only today (13 August, 2015).

With this, Den Networks, which is currently building its broadband base and also working towards digitisation in phase III and IV areas, is looking at attracting overseas capital into the company.

The MSO had sought to increase foreign investment limit beyond 49 per cent and up to 74 per cent by FIIs, NRIs, FPIs, and other eligible foreign investors through route of secondary market and / or open market purchase.

Earlier in March this year, the Board of Directors of Den Networks had approved the proposal to increase foreign investment limit.

The decision was subject to shareholder approval (through postal ballot), FIPB nod and adherence to all other statutory requirements.

Currently, FIIs hold 20.27 per cent stake in Den Networks.