Network 18, the holding company of TV18, has dropped plans for an initial public offer but promoter Raghav Bahl will dilute his holding in the company by over 10 per cent in favour of shareholders to raise additional funds for TV 18.
According to the strategy devised to mop up funds for the growth of TV18, Bahl will relinquish 10.56 per cent stake in the new holding company Network 18 to a trust that will see his stake coming down to 51 per cent.
The trust after receiving regulatory approvals, will sell the shares after Network 18 is listed on the bourses, the company said in a statement.
Network 18 will also divest 2.07 per cent stake in TV18 in the open market and bring down its holding in the company to 51 per cent.
The cash raised through both the strategic divestments will be made available to TV18.
So the top management has decided to drop plans for an IPO at the Network 18 level.
Post divestment, the final shareholding pattern of TV 18 will be -- Network 18 (51 per cent), public and others (44.3 per cent), employees (2.63 per cent) and shares to be sold (2.07 per cent).
Similarly, the final shareholding pattern in Network 18 will be in the following manner: Raghav Bahl (51 per cent), public others (38.44 per cent) and trust (10.56 per cent which will be later monetised).
