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.