SAIF-backed HomeShop18 abandons US IPO
HomeShop18, an Indian television shopping network and online market place backed by SAIF Partners and OCP Asia, has abandoned plans for a US IPO.
The company said in a regulatory filing that had decided to withdraw from the New York Stock Exchange listing because it is reevaluating its capital-raising strategy. This comes during a period of volatility in US markets, but also in the wake of the acquisition of HomeShop18's ultimate parent, Network18, by Reliance Industries.
The original IPO filing gave no specific details as to how many shares would be sold, the pricing or whether existing investors would make partial exits. HomeShop18 is operated by TV18 Home Shopping Network, which is in turn owned by NW18 HSN holding - a unit of Network18. SAIF has the largest stake of any financial investor with 25.2%, while OCP has 6.4% and South Korea's GS Home Shopping holds 17.1%.
Network18 is the overall majority shareholder in the business. However, Raghav Bahl, who controlled Network18, issued optionally convertible debentures to Reliance-owned Independent Media Trust (IMT). If converted, these debentures would give IMT a controlling interest in Network18.
In May 2014, Reliance approved funding of up to INR40 billion to IMT for the acquisition of Network18 and its subsidiary TV18 Broadcast. The financing was used to purchase a 78% interest in Network18 and a 9% interest in TV18, as well as buy shares tended through open offers.
The HomeShop18 television channel was launched in April 2008, with e-commerce site HomeShop18.com coming online in January 2011. The company generates revenue by earning commission from sales made by third-party vendors via its platforms, primarily the television channel.
It reported revenues of $40.7 million for the 2013 financial year, up from $24.5 million in 2012, while the total value of all products sold through the platform came to $166.5 million and $108.5 million for the two periods. HomeShop18 posted net losses of $25.8 million in 2013 and $22.5 million in 2012.
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