Videocon D2H's satellite arm approaches Sebi for Rs 700 cr IPO

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Bharat Business Channel, satellite TV arm of Videcon Group, has filed its papers with market regulator Sebi to raise Rs 700 crore through an initial public offer (IPO).

The company is also considering to raise Rs 50 crore through a Pre-IPO placement of its shares to institutional investors, it said in its draft prospectus made public by Sebi today.

The issue would comprise atleast 25 per cent of equity capital giving a valuation of Rs 2,800 crore to Bharat Business Channel, which provides direct-to-home TV services under Videcon D2H brand.

Other players in the business include Tata Sky, Dish TV, Sun Direct and Airtel Digital TV.

While the company has not disclosed the total number of shares to be sold in IPO, the Pre-IPO placement could be of one crore shares.

"Our Company is considering a Pre-IPO placement of up to one crore equity shares aggregating up to Rs 500 million with certain investors...If the Pre-IPO placement is completed, the Issue size will be reduced to the extent of such Pre-IPO placement, subject to the issue size constituting at least 25 per cent of the post-issue paid-up equity share capital of our company," the filing showed.

The company is planning to use the funds for "acquisition of set-top boxes, outdoor units and accessories thereof, repayment/prepayment of certain indebtedness and general corporate purposes."

IDBI Capital Market Services Ltd, SBI Capital Markets Ltd, Yes Bank, Enam Securities and UBS Securities India would act as a book running lead managers to the issue.

The shares are proposed to be listed on the BSE.

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