BAG Films may sell stake to raise funds

MUMBAI: Broadcasting and television content company BAG Films & Media is looking to sell 25-30% to raise funds for its planned Hindi sports channel, a person involved in the deal told ET. The company is in talks with private equity investors Goldman Sachs, 3i and Blackstone, he added. (Watch)

BAG Films runs three news channels, News 24, E24, Dhamaal 24, and produces fiction content for other channels. On Wednesday, the company had a market capitalisation of Rs 268 crore.

“There is a plan to raise Rs 150-170 crore,” said Abhinav Shukla, vice-president, corporate strategy. “It will be done through sale of equity, but I cannot confirm who will buy, we are talking to several investors.” The company hopes to raise the money within six to eight months.

The company is hoping for an enterprise valuation, equity plus debt minus cash or cash equivalent, of around Rs 650 crore, the person said. It expects to double broadcast revenue in the financial year March 2011, Mr Shukla said.

The company plans to launch the Hindi sports channel in time for the cricket World Cup, due in Feb 2011. BAG is also in talks with companies that own reality show formats, and may acquire some if it gets a commitment from a channel to retain the format, Mr Shukla added.