The decks
have been cleared for Bharat Business Channel, the company that runs Videocon
Group's DTH business, to go ahead with its proposed Rs 7 billion initial public
offering (IPO) with Sebi giving its nod.The company, which operates the DTH business under Videocon d2h brand, had filed its draft red herring prospectus (DRHP) with Sebi in December last year for the IPO. It plans to list the shares on the Bombay Stock Exchange (BSE).
Sebi
issued its final observations on the draft offer documents on 15 March.
Videocon
d2h plans to spend Rs 4.88 billion out of the IPO proceeds on purchase of
set-top-boxes (STBs) and associated equipment. The company will use another Rs
695.85 million to repay or prepay part of its debt from banks. The remaining
amount will be for general corporate purposes.
Bharat
Business Channel had outstanding secured indebtedness of Rs 16.62 billion from
banks and indebtedness of another Rs 2.25 billion from Videocon Industries as
of 31 October 2012.
The
company plans to raise Rs 500 million through sale of equity before the IPO. If
the pre-IPO placement is completed, the public issue size will be reduced to
the extent of such placement.