India's Videocon d2h receives NASDAQ listing

DetailsRebecca Hawkes | 01 April 2015

Indian direct-to-home (DTH) operator Videocon d2h is making its debut on NASDAQ with the listing of US$325 million American Depositary Receipts (ADR) it sold to Silver Eagle Acquisition Corporation.

The Indian satellite TV company will have a market cap of $1.15 billion on the US bourse.

With the move, Videocon d2h becomes the first private Indian company to list overseas since the year 2000, and launches the largest Indian initial public offering (IPO) in the US since 2007.

"Our listing on the NASDAQ Stock Exchange is a major corporate milestone for the entire Indian media industry, not just Videocon d2h, and a testament to the tremendous progress we have made under the Digital India vision of our Honorable Prime Minister," said Saurabh Dhoot, managing director, Videocon d2h.

"This is the success of thousands of Videocon d2h employees working tirelessly and our customers who believed in our brand, product and services. We have just begun."

In January, between 33.5% to 38.6% of Videocon d2h was sold to the US-based special purpose acquisition company Silver Eagle.

The satellite TV arm of the Videocon Group is now awaiting approval from the Securities and Exchange Board of India to list 10% of the company on the Mumbai Stock Exchange. It reportedly hopes to raise between INR7 billion ($112.38 million) to INR9 billion ($144.5 million) through the local IPO.

The money raised from the IPOs will be used to buy set-top boxes, partially retire some debt, and working capital requirements, as India enters the final phases of its nationwide cable TV digitisation process.

Videocon d2h, which launched in 2009, served 11.8 million subscribers equating to 16.5% of India's DTH market share as of September 2014.