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.