The Board of Directors of media house TV18 has approved a rights issue of Rs 20-crore. The money, according to a communiqué, will be used to finance the company's ambitious plans of expansion, which include the launch of a Hindi business channel by the end of the year.

Each shareholder of TV18 will be offered rights shares in the ratio of 1:12, that is, one rights share for every 12 equity shares held. Each rights share will be priced between Rs 150-180, and the promoters of TV18 have committed to underwrite the issue by offering to subscribe to the un-subscribed portion if any.

A rights share will also entitle the holder to two detachable warrants, which can be converted into an equity share - the first at the end of 18 months and the second at the end of 36 months. Both these warrants will be converted at a discount of 25 per cent to the average share price prevailing at the time of conversion.

Meanwhile, the Board has also reviewed the implementation of its ongoing expansion project in Mumbai, says the release. Phase one of the project, that is, the 40,000-square feet broadcast facility, is coming up rapidly in Mumbai, it informs. A slew of specialised broadcast equipment, new graphics hardware, OB vans and a select teleport in Mumbai (in addition to the one in Delhi) have already been commissioned. The company expects to launch its new, expanded broadcast operations of the Hindi business channel in the last quarter of 2004.