MUMBAI: Network18 Media & Investments Ltd. is getting a capital infusion of Rs 2 billion from the Raghav Bahl-owned founder group firm RB Holdings, ahead of its further fund-raising programme.

Network 18 will be issuing 18.2 million secured optionally fully convertible debentures (SOFCD) to RB Holdings at a price of Rs 110 each. The debentures will be converted within 18 months from the date of allotment and will amount to 20.13 per cent on a fully diluted basis.

"The promoters will have to raise their holdings in the company if they want to raise further capital through equity. As per regulations for news broadcasting companies, the promoter holding can't fall below 51 per cent," says a source in the company. The promoters hold 51.81 per cent, as per data provided by the company till 31 December 2008.

Network18 board has also approved issuing 25 million shares or other convertible instruments via one or a combination of measures including a preferential allotment, QIPs, FCCBs, ADRs, GDRs or any other equity-related instruments.

"This is an enabling clause to raise additional capital to fund our expansion plans. We plan to tap investors including overseas strategic. We have put some of our plans on hold. Depending on the economic environment, we could ignite some of them," adds the source.

Network18 is the holding company for both TV18 and IBN18 Broadcast. The Group's expansion plans include launch of a slew of regional news channels under IBN18.

Network 18 board has approved the increase of foreign investment limit in the company up to 49 per cent. This follows the government's recent amendments in FDI (foreign direct investment) guidelines, which the company feels has opened up fresh opportunities for it.

The board has also given the nod for the reorganisation of the company's authorised capital by converting 1.5 million shares of Rs 200 each into 60 million equity shares of Rs 5 each.