The stock debuted at Rs 195, at the same level as the initial public offer price (IPO). Around 7.38 lakh shares were traded on the Den Networks counter on the BSE. The stock hit a high of Rs 197 and a low of Rs 158.40 so far during the day.
The company had raised Rs 390 crore through the initial public offer (IPO), which was priced at the lower end of the Rs 195-Rs 205 price band.
Den Networks' IPO of up to 2 crore equity shares remained open between 28 and 30 October 2009. The IPO constituted 15.16% of the post-issue paid-up equity share capital of the company and ended with a subscription of 1.04 times.
Japan's financial giant Soft-Bank and India Capital of Hong Kong picked up nearly 2% stake in Den Networks. These two anchor investors picked up shares at Rs 205 per share, aggregating to around Rs 50 crore.
Den Networks plans to utilise the IPO proceeds to fund its investment in the development of cable television infrastructure and services, the development of cable broadband infrastructure and services, and acquisition of content and broadcasting rights amongst others.
Earlier this year, Den Networks had sold 39.5 lakh shares at Rs 190 each to foreign fund EMSAF.
Den Networks is a cable distribution entity with a pan-Indian footprint engaged in the distribution of analog and digital cable television services. The company currently provides cable television services in the National Capital Region of Delhi and the states of Uttar Pradesh, Rajasthan, Maharashtra, Gujarat, Karnataka, Haryana, Madhya Pradesh and Kerala. The company also has an all-India Internet service provider (ISP) licence and has recently commenced a limited roll out of broadband internet services in select areas.
The company had reported a net loss of Rs 13.8 crore on an income of Rs 271.11 crore in the year ending March 2009.