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HomeShop18 to re-evaluate fund raising, withdraws NYSE IPO plan
MUMBAI: Having the backing of Mukesh Ambani-controlled Reliance Industries Ltd (RIL), Network18’s home shopping network HomeShop18 has decided not to go ahead with its proposed $75 million initial public offering (IPO) plan on the New York Stock Exchange (NYSE).
In a filing on Wednesday to the Securities and Exchange Commission (SEC), the company informed that it would not proceed with the offering as it is ‘re-evaluating its capital raising strategy’.
NW18 HSN Holdings Plc, a Cyprus-based corporation and subsidiary of Network18, had first filed for the listing with the SEC on 2 April, and had amended it on 10 April. In fact, the company was planning to increase the IPO to up to $150 million. That is the time when Network18 founder-promoter Raghav Bahl was in charge of the company. But later, Network18 was acquired by RIL and Bahl exited as a shareholder.
“No securities have been issued or sold under the registration statement. The registration statement has not been declared effective by the Commission. The company has decided at this time not to proceed with the offering as it is re-evaluating its capital raising strategy and requests that the SEC consent to this application on the grounds that withdrawal of the registration statement is consistent with the public interest and the protection of investors,” it said in the filing.
“The company may undertake a subsequent private offering,” it further added.At present, HomeShop18 has SAIF Partners, GS Home Shopping and OCP Asia as investors.
As per the offer document, HomeShop18 was not to receive any proceeds from the sale of ordinary shares. Parent company Network18 Holdings was to provide fund in rupee equivalent of $42.3 million to HomeShop18 from the proceeds. HomeShop18 was to be using these funds to purchase equity interest in its Indian subsidiary, currently held by Network18, within 45 days of the completion of the offer.
The company had launched a television channel, Homeshop18, in April 2008 and the website, HomeShop18.com, was launched in 2011.