Emsaf Mauritius, a pre-IPO investor in one of the country’s largest cable television company Den Networks Ltd, has made a partial exit by selling nearly half of its stake. Emsaf sold 1.26 per cent stake in the market for Rs 7.03 crore.

The stake sale by Emsaf, which held 2.74 per cent as of June, 2011, comes as the share price of Den Networks has tanked, following 80 per cent fall in net profits. The share price of the firm closed on Thursday at Rs 38.55, down 9.99 per cent.

Emsaf sold shares in the Sameer Manchanda-promoted Den Networks at Rs 42.81. Emsaf invested Rs 75 crore at an average price of Rs 190 each in the company in July, 2009, and the company was listed in November, 2009. Emsaf is part of the $10.4 billion Emerging Markets Management LLC, which was acquired by UK's Ashmore Group Plc. earlier this year.

For Q1FY12, Den Networks' consolidated net profit fell 81.7 per cent to Rs 1.83 crore, as compared to the last quarter. However, its total income during the quarter jumped 15 per cent to Rs 283 crore.

The share price of the firm has taken a hammering during the last three sessions, falling over 44 per cent from its closing price of Rs 68.5 on August 12.

Private equity investors in Den Networks include several funds sponsored by IL&FS PE – Standard Chartered IL&FS Asia Infrastructure Growth Fund, IL&FS Infrastructure Equity Fund and Tara Holdings.

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