Homeshop18 eyes $100 Million IPO
Indian media group Network 18 is moving towards a U.S. listing of its wholly owned online retail arm, HomeShop18, that could raise about $100 million, two sources with direct knowledge of the matter said.
The group is in talks with institutional investors, including private equity firms, to take up shares as part of the listing plan, said the sources, who declined to be identified as the talks are not yet public.
"The process has just begun. We are in talks with bankers and investors," said one of the sources.
Indian online retail firms are raising capital to position themselves for rapid growth of the country's fledgling $10 billion online commerce market as rising incomes and aspirations to own big brands at discounted rates push a time-constrained working middle class to shop from the comfort of their homes.
"We have ambitions to get listed and are open to it but it is premature to talk about it now. We cannot give any timeframe on that at the moment," Sundeep Malhotra, founder and chief executive of the company, told Reuters.
Between 2007-2008, HomeShop18 raised $26 million from private equity fund SAIF Partners in two tranches and in 2009 it raised $18.5 million from South Korean home shopping retailer GS Home Shopping.