Den Networks to raise $160 million through share sale
Cable television services firm Den Networks Ltd plans to raise around $160 million (about Rs 865 crore) through issue of shares to institutional investors, including $110 million from the Goldman Sachs Group. The shares would be allotted to Goldman Sachs affiliates on a preferential basis at a price of Rs 217.50 apiece aggregating to $110 million (about Rs 596 crore).
Besides, the firm would issue further shares at Rs 217.23 apiece through a qualified institutional placement (QIP) route. While Den did not disclose the targeted amount for QIP, it could be $50 million (about Rs 270 crore). Den networks also did not disclose the quantum of shares to be issued, but, market sources added that total dilution could be as much as 28% and the share sale is expected to take place in a couple of days.
DEN reaches out to an estimated 11 million households in over 150 cities across 13 states in India including Delhi, Uttar Pradesh, Karnataka, Maharashtra, Gujarat, Rajasthan, Haryana, Kerala, West Bengal, Jharkhand, Bihar, Madhya Pradesh and Uttarakhand.
In early trading today, shares of DEN Networks have been actively traded with a volume of more than 3 lac shares on the NSE at a weighted average price of Rs 227.25.