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Summary:

Web18, the Internet and mobile company of the Network18 group is looking to dilute 10-15 percent equity, reports Indiantelevision.com, quoti…

Web18, the Internet and mobile company of the Network18 group is looking to dilute 10-15 percent equity, reports Indiantelevision.com, quoting a source. The company is planning to file for the ADR (American Depositary Receipt) within two months. Details of Web18’s probable plans here.

We have contacted Network18 Group CEO Haresh Chawla for an official confirmation or denial of this report.

The talk of a Web18 listing has been around for a while, and we’ve mentioned often enough that the company has been trying to build up valuation for a potential listing. The choice of listing in the international markets is an interesting one: possibly because the company is still in investment mode, and doesn’t want to list in India while still making losses. See our earnings coverage of Web18 here. In terms of an international listing there are usually two destinations – NASDAQ, where Sify and Rediff (NSDQ: REDF) are listed, or London’s Alternate Investment Market (AIM), where Eros and DQ Entertainment have listed. Indian law requires that the company list in the Indian markets within three years of turning a profit: Rediff and Sify have to list in India before March 2010.

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  1. This is an Indian law that I did not know about.
    Please check the listing requirement properly.
    For listing, a company needs to have at least 3 years of profit and a dividend track record. Even that is now being revisited. If companies have to list within 3yrs of turning a profit, then how were IPOs like DLF allowed?

  2. if they're listed internationally, then they have to list here within 3 years of turning a profit.

  3. I thought an Indian company couldn't list abroad at all if it wasn't listed here first

  4. and here's an article to back that up: http://economictimes.indiatimes.com/articleshow/1925889.cms

    Is web18 listed here?

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