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Den Networks raises Rs 100 cr in pre-IPO placement

Last Updated: Friday, September 18, 2009 - 14:00

Mumbai: 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 percent 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 percent per year from
Rs 58,400 crore in 2008 to a total of Rs 1,00,000 crore in

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 percent stake, Lucid Systems (15.91 percent), RRB Investment (9.80 percent), Standard Chartered
IL&FS Asia Infrastructure Growth Fund (8.12 percent) and Blue
Eye Entertainment (5.37 percent).

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

Bureau Report

First Published: Friday, September 18, 2009 - 14:00

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