MUMBAI: Den Networks Ltd, the first of the two multi-system operators to tap the capital market, has fixed its initial public offering (IPO) price band at Rs 195-205 per share.

Den will be able to raise Rs 4.1 billion at the upper and Rs 3.9 billion at the lower price band.

The valuation of Den, which has set its footprint across India by acquiring cable TV networks

, works out to Rs 27.04 billion on the upper side and Rs 25.73 billion at the lower end of the price band.

Den will hit the capital market on 28 October with an IPO of up to 20 million equity shares (of Rs 10 each). The issue closes on 30 October.

"The issue would constitute up to 15.16 per cent of the post-issue paid-up equity share capital of the company," Den said.

Earlier this year, Den sold 3.95 million shares at Rs 190 each to foreign fund EMSAF.

Set up in July 2007 by IBN18 Broadcast Ltd joint managing director Sameer Manchanda and Lucid Systems, Den has invested Rs 2.5 billion for acquiring cable networks.

Den intends to invest a further Rs 750 million towards acquisition out of the net proceeds of the IPO.

The MSO has earmarked Rs 2.1 billion towards digital cable TV infrastructure and Rs 250 million for cable broadband infrastructure and services. A further Rs 400 million will be utilised for repayment of loan and Rs 100 million for acquisition of content and broadcasting.

Den has 300,000 digital cable television subscribers and 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.

As reported earlier in Indiantelevision.com, Manchanda and associates own 62.65 per cent stake in Den. Following the IPO, the holding of Manchanda and associates will drop to 53.15 per cent.

TV18 Group founder Raghav Bahl‘s holding will fall from 9.80 per cent to just over 7 per cent after the IPO. The stake of IL&FS will drop from 11.8 per cent to 9.8 per cent.

Deutsche Bank and India‘s Antique Capital are the arrangers for the offer.

Hathway Cable & Datacom is also planning a public float and is awaiting Sebi (Securities and Exchange Board of India) clearance.