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Videocon d2h plans IPO this fiscal
MUMBAI: Videocon group’s direct-to-home (DTH) service provider Videocon d2h is in talks with its advisors and bankers and is planning to go for a public float this fiscal.
Managing director Saurabh Dhoot confirmed to TelevisionPost.com that Videocon d2h has not shelved its plan for an initial public offering (IPO). “We have engaged our advisors and bankers for the IPO. Axis Capital is one of the advisors and we are planning the public float this fiscal,” he said.
When asked about the size of the IPO, he said the amount has not yet been finalised. “The details of that (IPO) we will discuss internally and will finalise soon,” Dhoot told TelevisionPost.com.
In March 2013, Bharat Business Channel had received permission from market regulator Sebi (Securities and Exchange Board of India) for its proposed Rs 700-crore ( Rs 7 billion) IPO. However, given the market conditions, it decided not to pursue the IPO plans then.
Videocon has changed the name of the DTH company from Bharat Business Channel to Videocon d2h. Earlier, d2h was the brand name of the service.
“The rechristening of the name will not have any impact on the IPO,” Dhoot clarified.
The company, which started operations in July 2009, has a gross subscriber base of over 11 million.
Videocon d2h’s total investments by the end of this fiscal would stand at Rs 5,000 crore (Rs 50 billion), Dhoot told TelevisionPost.com. The company is EBITDA positive since the last one-and-a-half years.
The IPO proceeds will be used for acquisition of set-top boxes, outdoor units and accessories and repayment of debt.
As per its last DRHP filing, Videocon d2h had, till 31 October 2012, outstanding secured indebtedness of Rs 1,662 crore ( Rs 16.62 billion) from banks and indebtedness of another Rs 225 crore ( Rs 2.25 billion) from Videocon Industries.