Hong Kong-based, Asia-focussed private equity firm SAIF Partners, which has in the past invested in Indian companies such as Homeshop18, Makemytrip.com, Sify and Just Dial, will infuse Rs120 crore into Network18 Media and Investments Ltd, Raghav Bahl-promoted (pictured right) holding company of the Network18 Group, which has subsidiaries such as TV18 India Ltd and IBN18 Broadcast Ltd. In a press release to the Bombay Stock Exchange, Network18 said the company’s board today approved a preferential allotment of 92,02,650 equity shares at Rs130 per share. Shares of Network18 closed at Rs155.20, up 16.56% from its previous close of Rs133.15 on BSE. The Benchmark Sensex closed at 14,870, down 0.03% from its previous close.
We had reported on 20 May that Network18 was in talks with foreign financial investors for a stake sale.
Promoter Raghav Bahl had recently infused Rs250 crore in the company. The board had also earlier approved qualified institutional placement of 2.5 crore equity shares. The board has appointed a committee to manage the QIP issue. Together, the company will potentially have a cash pool of Rs600 crore, it said in a statement.
Source: Reuters