Bharat Business Channel, satellite TV arm of Videcon Group, has filed its drat red herring prospectus with the 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.
The issue would comprise around 25 percent 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.
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 percent of the post-issue paid-up equity share capital of our company," the filing stated.
The company is planning to utilize the IPO proceeds 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.
by RTT Staff Writer
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