New Silk Route in talks with Sony Pictures to sell 9X Media for Rs 250-300 crore

MUMBAI: New Silk Route, an India-focused private equity fund, and Pradeep Guha are in talks with Sony Pictures Networks India among other investors to sell music channels group 9X Media for anywhere between Rs 250 crore and Rs 300 crore.

The PE fund, that holds around 80% stake in the company, expects to barely recover the amount it had invested in the business nine years ago.

“The PE investor is growing impatient as it has stayed its course. However, the buyers are not ready to pay such a hefty valuation,” said a person involved in the discussions. The sale process, the person added, is driven by Pradeep Guha, the group’s chief executive officer who also owns around 15% stake in the company.


Owing to poor demand, the PE fund and other shareholders have been engaging with prospective buyers on and off for the last two years. 9X Media operates five music channels — 9XM (Bollywood music), 9X Tashan (Punjabi music), 9X Jalwa (retro Bollywood hits), 9X Jhakaas (Marathi music) and 9XO (international music).

Pradeep Guha did not respond to a questionnaire emailed a week ago. But an official with direct knowledge of the sale process confirmed that the talks were on track.

An NSR spokesperson, in an emailed response, said, “We are committed to providing returns to our investors and are optimistic about liquidity events in 2016. However, NSR would not like to offer any comments on market speculations.”

A spokesperson for Sony Pictures Network India, in an emailed response, said, “As a matter of policy, we do not comment on speculation.”

Founded by now jailed couple Peter Mukerjea and Indrani Mukerjea as INX Media in 2006, the company was 30% previously owned by PE funds NSR, Kotak Equity Fund, Temasek and New Vernon.

Kotak, Temasek and New Vernon sold their stake to NSR in 2009. Guha was roped in by NSR in 2009 to turn around the lossmaking business. He came on board with a 15% stake in the company.

Guha worked with NSR to restructure the business by selling the loss-making Hindi general entertainment channel 9X to Zee Entertainment. INX News was subsequently sold to Indi Media.