Channel Guide India Ltd informed the Bombay Stock Exchange today that the company board has decided to issue 2 million equity shares of Rs10 each at par to promoter/director/relatives/associates and selected person on preferential basis.

The board will call a shareholders meeting to obtain approval in due course, a company release says.

Queried as to the reasoning behind the move, Ravi Deshmukh, chief operating officer, Channel Guide said the it was to fund the company's expansion plans.

Channel Guide is a specific preview and menu free-to-air channel that primarily relays infomercials about the various satellite channels that exist today. The channel also acts as a promotional platform for the new film and music releases and highlights major cultural events and certain premium brands.