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Network 18 Gets Rs 120 Cr From SAIF Partners

03 June, 2009

Network 18 Media & Investment Ltd, the holding firm of the Raghav Bahl promoted Network18 group, has raised Rs 120 crore in private equity funding from SAIF Partners. In its comunique to the exchanges, the media conglomerate said that it will allot equity or an equity linked convertible instrument to the PE firm on a preferential basis.

The shares have been sold at Rs 130,  at a discount of today’s closing price of Rs 155.2. The stock closed up by more than 16.5% today, when markets have remained flat.

Vibhor Mehra, Principal at SAIF Partners, refused to offer any comments on the deal when contacted by VCCircle.

SAIF will get an 11.3% stake in post -issue equity of the company. Network 18 has also called for a Extraordinary General Meeting (EGM) to approve the preferential allotment. SAIF Partners has also invested $16 million in the group’s home shopping network, Homeshop18.

The company has also said that it has formed a committee to manage all aspects of its Qualified Institutional Placement (QIP). The company is looking to sell upto 2.5 crore equity shares in the issue. Factoring in the preferential allotment price to SAIF, the issue could raise Rs 325

crore. Post-QIP, the stake held by SAIF in Network 18 will be 8.67%. Other shareholders in Network 18 are Reliance Capital, hedge fund Passport Capital and ChrysCapital’s Ashish Dhawan. Network 18 raised Rs 250 crore from its promoter Raghav Bahl earlier this year.

Network 18 is one of India’s leading full play media conglomerates with interests in television, print, internet, filmed entertainment, mobile content, etc. Network 18 FinCap is the holding company for several listed and unlisted media entities such as Television Eighteen India Ltd (TV18), Global Broadcast News (GBN), Web 18, Studio 18 and Shop 18.

BMR was the financial adviser on the deal.


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2 Comments
ajay jain . 6 years ago

I hope this is not another one of the portfolio-company-in-distress investment made by SAIF. They have made quiet a few recently including the travel portal and other online and tech investments. It will be good for the economy and entrepreneurs if the VC capital actually shows some good returns.

ram g. . 6 years ago

I agree with the last point. We went to many VC’s in the last 1 year to raise capital for our start-up. Everyone liked the plan but then declined by saying that there is no other VC that has made money in the sector so far. So is it the entrepreneurs fault if VC’s made bad decisions. There should be some way for the entrepreneurs to talk directly to the VC’s investors so that they are aware of the impractical decisions made by VC’s. Actually, now i have understood the entire food chain and it replicates the ‘greater fool theory’. Some rich guy gives money to a pension or endowment fund who then pass it on to some VC fund managers who then pass it on to some glib talking promoter. There is a 4-5 degree of separation between then owner of the money and the user of the money. Odds are stacked in favour of a loss of capital. But why should the enterpreneur suffer becasue of this flawed food chain?

Network 18 Gets Rs 120 Cr From SAIF Partners

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