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.