Cable television company DEN Networks Ltd is raising $110 million (Rs 600 crore) from an arm of Goldman Sachs in what will be the single largest private equity deal in India's cable & satellite space.
The deal involves Broad Street Investments (Singapore) and MBD Bridge Street 2013 Investments (Singapore), affiliates of Goldman Sachs, picking up shares through preferential allotment in the company.
Though the number of shares to be picked up was not disclosed, VCCircle estimates that the firm would end up with 16-17 per cent stake.The preferential allotment will be at Rs 217.5 per share. Scrip of Sameer Manchanda-promoted DEN Networks closed at Rs 226.75, up 2.14 per cent on the BSE in a strong Mumbai market on Monday.
DEN Networks has been backed by various funds managed by IL&FS Investment Managers.The current round of funding for DEN comes as it has also opened a qualified institutional placement, which could raise up to $50 million.
For Q3FY13, DEN Networks reported 11.9 per cent quarter-on-quarter growth in revenues at Rs 241.8 crore while its net profit was up 12.1 per cent to Rs 18.4 crore.The previous top deal in the cable & satellite sector was when Apollo Global Management invested $100 million in Dish TV in 2009, according to VCCEdge, the data research platform of VCCircle.