Videocon D2H files fresh papers with SEBI for Rs 700 cr IPO

Videocon D2H Ltd, the satellite television arm of Videocon Group, has filed fresh papers with market regulator SEBI to mop up Rs 700 crore through an initial public offer.

The company has filed fresh draft documents under the name of ‘Videocon D2H Ltd’ with SEBI as the regulator’s earlier approval — valid for one year— has lapsed.

Videocon D2H had received approval in March 2013, carrying a validity of one year, as per SEBI’s Issue of Capital and Disclosure Requirements (ICDR) Regulations.

However, the company did not launch the same due to bad market conditions.

“IPO of equity shares of face value of Rs 10 each of Videocon D2H Ltd... aggregating up to Rs 7000 million [Rs 700 crore],” the company said in its draft prospectus made public by SEBI today.

The company is also considering to raise Rs 50 crore through a pre-IPO placement of its shares to institutional investors.

While the company has not disclosed the total number of shares to be sold in IPO, the pre-IPO placement could be of 50 lakh shares.

“The pre-IPO placement is at the discretion of our company... 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 10 per cent of the post-issue paid-up equity share capital of our company,” the company said.

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.”

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

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.

In July, the satellite TV arm of the diversified Videocon Group formally announced the change of its name from Bharat Business Channel to Videocon D2H.

Videocon director Saurabh Dhoot had earlier said that the company is likely to go ahead with its proposed public float plan this financial year.

Earlier in December 2012, it had filed draft documents under the name ‘Bharat Business Channel’ with SEBI to raise Rs 700 crore through an IPO.