CNBC-TV18 promoter applies to list web subsidiary on Nasdaq

Network 18 Media & Investments and its subsidiary Television Eighteen India Limited have made a joint announcement stating that their subsidiary entity Web 18 Holdings Limited, has submitted a draft registration statement on a confidential basis to the US Securities and Exchange Commission for a proposed initial public offering of American depositary shares representing ordinary shares of Web 18.

The shares will be listed on Nasdaq.

The date for the IPO has not been finalised, as the company says the timing will be decided as market conditions stabilise.

The number and dollar amount of ADS proposed to be offered and sold have also not yet been determined.

Last February there were media reports that Web18 was looking at diluting 10-15 per cent through an ADR issue.

While TV18 holds 85 per cent in Web18, Global Broadcast News (GBN) has a 15-per cent stake.

The holding of GBN is because of the web property IBNLive.com that it has contributed to the assets of Web18.

TV18 is a subsidiary of Network18 operates India's leading business news television channels, CNBC-TV18 and CNBC Awaaz. It also runs one of India's largest internet players - Web18, as well as one of India's leading real time financial information and news terminals - Newswire18.

TV18 has recently expanded into print with the acquisition of Infomedia, India's leading player in the B2B publishing and printing operations space, and announced a collaboration with US business journal Forbes for the launch of a business magazine in India.

Nework 18 has also announced its financial results for the third quarter ended 31 December 2008. The quarter on quarter revenues have fallen by nearly 24 per cent, which the management has attributed to exceptionally tough quarter for business channels. It also expects the fourth quarter to be weak, since full presentation of union budget to take place after general elections.

Profit at the news division fell more than 75 per cent to Rs4.62 crore, with operating margin shrinking nearly 27 per cent.

Web 18, its internet division and Newswire18, its wire service, posted quarterly net losses with operating margin at Newswire slipping to 17.18 per cent from 47.37 per cent in the year-ago quarter.