Videocon d2h revives IPO plans, files for Sebi approval
The satellite television arm of the Videocon Group has filed for an IPO to raise up to Rs700 crore
Mumbai: The satellite television arm of the Videocon Group, Videocon d2h Ltd (earlier Bharat Business Channel Ltd), has filed for an initial public offering (IPO) to raise up to ₹ 700 crore. This is the second time the firm is looking for a public listing after its IPO plans failed last year owing to subdued equity markets.
The firm had received an approval from Securities and Exchange Board of India (Sebi) to raise ₹ 700 crore in March 2013 through a share sale. The IPO launch was delayed due to subdued market conditions. The firm then had been planning to dilute 25% equity, valuing it at ₹ 2,800 crore. It will also be looking to raise Rs50 crore from anchor investor through a pre-IPO placement.
“Videocon d2h is now expecting a valuation of Rs4,000 crore and is now looking to sell about 18% stake," said an investment banker directly involved in the transaction. He further said that the IPO is likely to hit the market between January and February. The funds raised will be used for further geographical expansion. If listed, Videocon’s DTH arm will be the second standalone DTH firm to be listed after Dish TV Ltd.
Venugopal Dhoot, chairman of Videocon Industries Ltd, could not be reached immediately for a comment.
UBS, Axis Capital, ICICI Securities, Edelweiss Financial Services and SBI Capital Markets will be among the issue managers.
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