Bharat Business Channel, direct to home TV arm of Videocon Group, has received the go-ahead from market regulator Sebi for its proposed Rs 700 crore (Rs 7 billion) initial public offering.
Sebi issued its final observations on the draft offer documents on March 15, as per the latest update by the market regulator. The regulator's observations are necessary for the companies to launch any public offer.
The regulator had received the draft offer documents on December 14
The company's proposed Initial Public Offer (IPO) estimates to raise Rs 700 crore. It is also considering to mop-up Rs 50 crore (Rs 500 million) through a pre-IPO placement of its shares to institutional investors.
The proposed IPO would comprise at least 25 per cent of equity capital, giving a valuation of Rs 2,800 crore (Rs 28 billion) to Bharat Business Channel.
The company plans to use the funds for "acquisition of set-top boxes, outdoor units, and accessories thereof, repayment/prepayment of certain indebtedness and general corporate purposes."
Earlier in January, Sebi had sought clarifications from the merchant banker of Bharat Business Channel regarding the proposed IPO.
Pvt infra firms may get to issue tax-free bonds
Despite Sebi glare, Sahara still raises funds
Videocon to roll out 4G LTE services in Gujarat
Nalco stake sale starts; scrip tanks 8%
Anadarko, Venugopal Dhoot put gas asset on the block