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Indiantelevision.com's Digital Edge

Web18 plans private placement for over Rs 2 bn

Indiantelevision.com Team

(25 October 2008 8:30 pm)

MUMBAI: Web18, the company that holds all the Internet properties of TV18 Group, is planning to raise Rs 2 billion upwards through a private placement as the market has turned weak to absorb IPOs (initial public offerings).

Web18 had earlier planned to dilute 10-15 per cent through an ADR (American Depository Receipt) issue.

“We are looking at a private placement for Web18 and are in talks with investors. The global financial market has crashed and it will be difficult for us to raise money through a listing,” says a source in TV18.

Web18 owns a clutch of portals that include MoneyControl.com, IBNLive.com, Cricketnext.com, IN.COM, Tech2.com, Biztech2.0, Compareindia.com, Buzz18.com, IndiWo.com, Josh18.com, Bookmyshow.com and Storeguru.com.

TV18 managing director Raghav Bahl had stated in a recent financial performance release that Web18’s various properties, including the newly launched horizontal general interest portal IN.COM, are “creating a huge amount of shareholder value, which should get unlocked soon.”

Web18’s net loss for the first half of the fiscal stands at Rs 326.42 million and could go up in the second half because of the incubation of IN.Com.

“Web18 would require funding for its expansion. An IPO route doesn’t look attractive at this stage because of the opportunity loss in capturing the real value of the internet properties,” says a market analyst who closely tracks TV18.

Web18's revenue for the first half of the fiscal stands at Rs 284.26 million.