Reuters will pay $19.86 million (about Rs 89 crore) to pick up a 25.82 per cent stake in Times Global Broadcasting Company Limited, owner of news channel Times Now.

According to an application filed by Reuters with the Foreign Investment Promotion Board, it will pay Rs 40.36 for each of the 22.14 million Times Global shares it proposes to buy.

This puts the total valuation of Time Global Broadcasting, which launched its channel about two weeks back at $76.91 million (Rs 346 crore). The other shareholder in the Indian company is Bennet, Coleman & Co, the publisher of The Times of India and The Economic Times.

The valuation of Time Global is much higher than the $27 million (Rs 121 crore) valuation received by Jagran Television, that runs Channel 7, last week when CNN-IBN bought a 50 per cent stake for $13.5 million.

On the other hand, for the market leader NDTV - as on Monday's closing price of Rs 215.85 at the Bombay Stock Exchange - has a total valuation of Rs 112 crore.

Reuters' investment in the Indian broadcaster will be routed through a subsidiary called Reuters Singapore Pvt Ltd. As per the agreement, the foreign investor will not carry on any activity in India in the same field as Times Global Broadcasting.