MUMBAI: Maa TV Network Ltd, which operates a telugu general entertainment channel, is in talks with a group of investors to raise Rs 300 million through preferential allotment of shares.

In the expanded equity, founder-promoter Murali Krishna Raju is willing to bring down his stake from 85 per cent to 50 per cent. The holding of the other promoters may reduce from 15 per cent to 7.5 per cent, a source close to the company says.

 
The company has plans to launch a music channel and also spruce up programming on Maa TV. "Talks are on with local investors and also TV9," says the source. TV9 is a Telugu news channel, promoted by venture fund i-Labs Associated Fund and Chennai-based Unify Wealth Management.
 
 
Maa TV has been in search of funds for over a year and earlier talks with Sun Network for selling stake had failed. The channel is now banking on blockbusters to boost its ratings. "Part of the fund requirement is to make movie acquisitions. Investment will also be made towards serials," the source says. 

The channel plans to introduce soaps in its primetime line-up starting 2005 December.