Digital Entertainment Networks (DEN), the multi-system operator with a pan-India presence, is looking to mop up around Rs 500 crore through an initial public offering (IPO). The company, which has a subscriber base of around 10 million, will file its draft red herring prospectus with the Securities and Exchange Board of India (SEBI).

“The fresh issue of shares would result into a dilution of 15-20 per cent of the expanded paid-up capital of the company. The number of cable households in India is expected to grow to 130 million by 2013 from 90 million at present and we want to tap this market aggressively.” said a company source.

Deutsche Bank is the global coordinator, while Antique Stock Broking is the book running lead managers for the IPO. DEN had raised around Rs 150 crore in the first round of private placement to IDFC and a foreign fund.

This would be the first IPO of a cable company in the country. Dish TV, India’s largest direct-to-home (DTH) satellite TV player, is the only purely distribution company already listed on the bourses.

DEN Network is promoted by Sameer Manchanda, joint managing director, IBN18; with Raghav Bahl, promoter and managing director, Network18, being the founder member.

The company also has an equal joint venture with Star India, known as Star DEN, which aims to create a platform for distributing TV channels in India via all fixed networks including cable, DTH, IPTV, HITS and MMDS.