Cable TV company Den Networks is to raise US$160 million by selling shares to institutional investors, as India embarks on the third phase of its nationwide cable TV digitisation programme.
The Delhi-based multi-system operator (MSO) registered its intent on the Bombay Stock Exchange on 6 May to attract foreign investment equity to help it complete its extensive digital network upgrade. A $110 million preferential equity allotment will – subject to shareholder and regulatory approvals – be made to Goldman Sachs' Singapore-registered affiliates Broad Street Investments and MBD Bridge Street 2013 Investments at a face value of INR10. The board has approved the issue price of INR217.5 each for the preferential allotment, according to the regulatory filing.
The board, which approved a plan for the company to divest 26% equity in March, has also now approved a qualified institutional placement (QIP) plan to raise a reported $50 million at a price of INR217.23 per share.
Den's cable network reaches around 11 million homes and covers over 150 cities in 13 Indian states, including Delhi, Uttar Pradesh, Karnataka, Maharashtra, Gujarat, Rajasthan, Haryana, Kerala, West Bengal, Jharkhand, Bihar, Madhya Pradesh and Uttarakhand.