Network 18 drops IPO plans; Raghav Bahl to surrender 10 per cent stake

This will bring down Bahl’s shareholding in Network 18 to 51 per cent

The Raghav Bahl promoted TV18 has dropped its plans to launch an IPO. Instead, Bahl has informed the company that he will voluntarily relinquish over 10 per cent stake in Network 18 in favour of a trust for the benefit of TV18. Currently, Bahl holds 61 per cent stake in Network 18. This will bring down his shareholding in Network 18 to 51 per cent.

The trust will hold 10.56 per cent (5,269,533 shares) stake in Network 18 (the new holding company).

The trust will, subject to receipt of all regulatory approvals, sell these shares after Network 18 is listed, leading to an efficient price discovery. The cash so raised will then be made available to TV18.

The company has further decided that Network 18, which owns 53.07 per cent stake in TV18, will divest 2.07 per cent of its shareholding in TV18 in the open market. This will bring Network 18’s holding in TV18 down to 51 per cent. The cash raised by this sale will also be made available to TV18.

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