(28 March 2009 8:50 pm)

MUMBAI: Digital Entertainment Networks, one of the leading multi-system operators jointly floated by IBN18 joint MD Sameer Manchanda and Network18 founder-promoter Raghav Bahl, is in talks with private equity investors to raise funds for expanding its digital cable TV business.

The MSO has already got an investment of $40 million from Infrastructure Leasing & Financial Services Limited (IL&FS), a source familiar with the development tells Indiantelevision.com.

DEN has a major presence in Delhi and Uttar Pradesh, the two lucrative carriage revenue markets for cable networks from broadcasters, and is pushing for digital set-top boxes (STBs) for which is requires fresh infusion of capital.

"DEN has initiated serious talks with private equity investors. It has also kept open its other option of tapping the capital market with an initial public offering," the source says.

DEN has gobbled up Amogh Broadband Services, a leading MSO promoted by former Karnataka chief minister D Kumaraswamy's family. DEN pegged the enterprise value of Amogh at Rs 800 million, the source adds.

When contacted, DEN CEO Anuj Gandhi declined to comment.

DEN is using News Corp's NDS digital broadcasting solutions for its digital cable service. NDS has been selected to provide VideoGuard conditional access system (Cas), MediaHighway middleware and an advanced electronic programme guide (EPG).