(1 October 2009 8:20 pm)

MUMBAI: Web18 Holdings, the Internet arm of Raghav Bahl-promoted TV18, will get a capital infusion of $10 million from global investor Nokia Growth Partners (NGP) II Mauritius.
Web18, which has been on a fund hunt for long, will make a preferred stock allotment to NGP.

TV18 said Thursday that its board has approved the agreement for issuance of preferred stock of Web18 to NGP II Mauritius, which will infuse funds as strategic growth capital.

With a corpus of $350 million, NGP II Mauritius is the investment fund started by the Finnish mobile handset maker. It invests in information and communications technology companies serving the mobile industry.

BMR Advisors acted as transaction advisors to TV18 for the fund raising.

Web18 houses the websites of TV18 group, including In.com, Ibnlive.com, Moneycontrol.com, Commoditiescontrol.com, Cricketnext.com, Poweryourtrade.com, Tech2.com, Compareindia.com, Jobstreet.com, Buzz18.com, IndiWo.com, Josh18.com, Bookmyshow.com and Storeguru.com.

For FY 2009, Web18 posted a revenue of Rs 712.10 million.

Web18 had ambitious growth plans, and the company was looking to list in the US to raise funds for expansion. As reported earlier by Indiantelevision.com, Web18 was looking at diluting 10-15 per cent through an ADR (American Depository Receipt) issue.

In January this year, Web18, had submitted, on a confidential basis to the US Securities and Exchange Commission (SEC), a draft registration statement for a proposed initial public offering (IPO) of American depositary shares (ADS), representing ordinary shares of Web18.

However, a global economic downturn upset such plans. Web18 has downsized staff to tide over a tough recessionary phase.

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Web18 plans private placement for over Rs 2 bn

Web18 plans ADR issue, to dilute 10-15%