Harish Thawani-controlled Nimbus Communications, the promoter firm of Neo Sports Broadcasting, plans to issue preferential shares to its institutional investors, including Cisco, 3i and Oman Investment Fund (OIF), for raising Rs 250 crore. After the transaction, the stake of institutional investors will increase by 7-8 per cent to 54 per cent, said highly placed sources.

The proceeds of the transaction will be used for launching two niche channels under the Neo brand at an investment of Rs 175 crore. The remaining Rs 75 crore will be used for buying more telecast rights.

Nimbus, which has bagged telecast rights until 2010 of domestic cricket and international matches played at home for $612 million, and its Chairman Harish Thawani, in this personal capacity, have invested Rs 700 crore in Neo channels, such as Neo Cricket and Neo Sports. With two years of experience, Neo Cricket has notched the top position in sports broadcasting, according to TAM rating.

“Neo Sports Broadcasting will be launching a mass lifestyle channel, not a niche one like NDTV Good Times, by September-October targeting the middle class. Again, it will be launching a niche entertainment channel, not a GEC (general entertainment channel), around December,” said sources.

Nimbus, which formed as an advertising agency in the late 80s by Harish Thawani, roped in Europe-based private equity firm 3i, US software giant Cisco and Oman International Fund in 2007 and raised Rs 522 crore.

Neo Cricket is currently telecasting the India-Sri Lanka series and have rights for Afro-Asia Cup in June-July, India-Australia series in September-October, India-Sri Lanka series at home in November-December. The channel also has the rights for the India series in Bangladesh and India-Bangladesh-Sri Lanka triangular. India-South Africa series in 2010 at home will also be telecasted by the broadcaster.

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