After Goldman Sachs deal, DEN Networks raises $50M through QIP

By TEAM VCC

  • 08 May 2013

After raising funds from Goldman Sachs earlier this week, cable television company DEN Networks Ltd has raised a little over $50 million or Rs 271 crore from a clutch of domestic and overseas institutional investors. Investors in DEN’s qualified institutional placement (QIP) include Nomura, L&T Mutual Fund, DB International and Abu Dhabi Investment Council, according to sources familiar with the development.

DEN said in a filing that it issued 12.46 million shares to qualified institutional buyers at Rs 217.5 a unit on Wednesday. This is the same price at which the Sameer Manchanda-promoted firm is issuing shares to Goldman Sachs.

Shares of DEN Networks closed at Rs 224.95 a unit, up 0.76 per cent on Wednesday.

With the QIP, DEN raised a total of $160 million. Elara Capital, Deutsche Bank and IDFC Capital were manager to the issue.

DEN has been backed by various funds, managed by the private equity firm IL&FS Investment Managers.

For Q3 FY13, DEN reported 11.9 per cent quarter-on-quarter growth in revenues at Rs 241.8 crore while its net profit was up 12.1 per cent to Rs 18.4 crore.

(Edited by Sanghamitra Mandal)