MUMBAI: IBN18 Broadcast Ltd joint managing director Sameer Manchanda and associates own 62.65 per cent stake in DEN Networks Ltd, a leading multi-system operator (MSO) jointly promoted with Raghav Bahl. DEN Networks also holds a 50 per cent stake in Star DEN, a joint venture distribution company with Star.

Following the proposed initial public offering (IPO), the holding of Manchanda and associates will drop to 53.15 per cent.

TV18 Group founder Bahl currently holds 9.80 per cent in DEN Networks. This will fall to just over 7 per cent after the IPO.

Post-IPO, the stake of IL&FS will drop from 11.8 per cent to 9.8 per cent. IL&FS had invested around Rs 2 billion in DEN.

As reported earlier in Indiantelevision.com, DEN is considering a pre-IPO placement. The company is planning to raise $100 million and has filed with the Securities and Exchange Board of India (Sebi).

DEN plans to invest Rs 2.1 billion in digital cable TV infrastructure out of the proceeds of the IPO and Rs 250 million for cable broadband infrastructure and services. A further Rs 400 million will be utilised for repayment of loan and Rs 100 million for acquisition of content and broadcasting.

The company intends to put in Rs 1.65 billion for digital set-top boxes (STBs) out of the Rs 2.1 billion it has set aside for cable TV infrastructure. Head-ends (digital and analogue) will take away Rs 149.75 million.