Den Networks raises Rs 100 cr in pre-IPO placement

Leading cable company Den Networks, which is looking at raising Rs 500 crore through an initial public offer, has raised Rs 100 crore through a pre-IPO placement of its shares with a Mauritius-based fund.

EMSAF Mauritius has bought 39.47 lakh shares amounting to 3.92 per cent stake in the company for Rs 100 crore in a pre-IPO placement, a source close to the development said.

The deal values the company at close to Rs 2,500 crore.

When contacted, a company official confirmed the development, but declined to comment further as it was awaiting the regulatory approvals for the IPO.

Den is planning to raise around Rs 500 crore through an initial public offering, thus making it one of the largest IPOs from the media sector to hit the Indian market.

The total market size for India's entertainment and media industry is projected to grow at 12.5 per cent per year from Rs 58,400 crore in 2008 to a total of Rs 1,00,000 crore in 2013.

The cable households in India are expected to grow to 13 crore by 2013 from 9 crore at present.

The company has filed the draft prospectus with the market regulator Sebi for the IPO.

Deustche Bank is the global coordinator and book running lead manager of the issue while Antique Stock Broking is the BRLM for the IPO.

The major shareholders of the company include Sameer Manchanda with 45.20 per cent stake, Lucid Systems (15.91 per cent), RRB Investment (9.80 per cent), Standard Chartered IL&FS Asia Infrastructure Growth Fund (8.12 per cent) and Blue Eye Entertainment (5.37 per cent).

With the recent transaction, EMSAF has become one of the top-ten shareholders in the company.