MUMBAI: Times Global Broadcasting Corporation Ltd, which is readying to launch business news channel ET Now, is on the hunt for an investor to raise close to $50 million (Rs 2.5 billion).

The company is looking at a dilution of 25-26 per cent equity and has mandated UBS Securities India to help in this pursuit, sources say. When TGBCL launched the English general news channel, it had roped in Reuters as a strategic partner with a 26 per cent holding.

The valuation at around $200 million (Rs 10 billin) seems to be steep at a time when the market cap of media companies has contracted in the wake of a global financial turmoil.

When contacted, both Times Global Broadcasting CEO Chintamani Rao and UBS Securities declined to comment.

TGBCL has suffered a net loss of Rs 720 million on a revenue of Rs 643.2 million for FY'08, according to a presentation made to potential investors. The estimated loss for FY'09 is Rs 1.15 billion on a turnover of Rs 931.2 million.

The company recently signed an agreement with Reuters to source financial and business content for ET Now. Last year, Reuters divested its 26 per cent stake in Times Global Broadcasting.