Report: Web18 To Dilute 10-15 % Equity Via ADR

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