Videocon d2h to launch US$113MN IPO
| 02 October 2014
Videocon d2h, the Indian direct-to-home (DTH) satellite TV operator, has filed for an initial public offering (IPO) with the market regulator to raise up to INR7 billion (US$113.30 million).
Seven banks – namely UBS, Axis Capital, ICICI Securities, SBI Capital Markets, Yes Bank, and IDBI Capital – will manage the share sale.
"The price band and the minimum bid lot will be decided by our company in consultation with the joint global coordinators and book running lead managers," said a statement from Videocon.
The company is also considering a preferential issue of up to five million equity shares, aggregating up to INR5 billion ($81 million) with certain investors.
Some of the net proceeds will go towards the acquisition of set-top boxes and outdoor units, while another portion will be used to repay loans.
It is the second time the company has planned to go public. Despite receiving approval from the regulator Sebi in March 2013, it withdrew its offer due to poor market conditions.
The satellite TV arm of the Videocon Group began operations in July 2009, and registered 11.21 million gross subscribers at the end of June 2014 – just over 16% of India's total DTH subscriber base.