Network18 to raise Rs 120 crore from SAIF partners

Raghav Bahl promoted Network18 group is raising Rs 120 crore in private equity for its listed entity Network18 Media & Investment Ltd. The PE firm SAIF Partners will be made a preferential allotment of 92,02,650 shares at Rs 130 per share. This is part of the company's fund raising plan via issue of 2.5 crore equity shares under qualified institutional placement (QIP). BMR Advisors is the financial advisor to the company.

Earlier this year, promoter Raghav Bahl infused about Rs 250 crore into the company. Following this QIP issue to SAIF Partners, Network 18 Media will potentially have access to a cash pool in excess of Rs 600 crore. The company also said it has set up a committee to manage the various aspects of the QIP issue including the opening and closing, and the price, among other things.

According to a VCCircle report, SAIF will get an 11.3% stake in post-issue equity of the company. Network18 has also called for an extraordinary general meeting (EGM) to approve the preferential allotment. SAIF Partners has also invested $16 million in the group's home shopping network, Homeshop18.

Factoring in the preferential allotment price to SAIF, the issue could raise Rs 325 crore. Post-QIP, the stake held by SAIF in Network18 will be 8.67%. Other shareholders in Network18 are Reliance Capital, hedge fund Passport Capital and ChrysCapital's Ashish Dhawan.