Videocon D2H arm gets Sebi nod for Rs 700 cr IPO

Videocon Group's direct-to-home (D2H) TV arm Bharat Business Channel has received the go-ahead from the Securities and Exchange Board of India (Sebi) for its proposed initial public offering (IPO).

The IPO estimates to raise Rs 700 crore. The company is also considering to mop-up Rs 50 crore through a pre-IPO placement of its shares to institutional investors.

Sebi issued its final observations on the draft offer documents on March 15. The company had filed its draft red herring prospectus (DRHP) with the market regulator in December 2012 for the offer.

Sebi had, earlier in January, sought clarifications from Bharat Business Channel's merchant banker regarding the IPO.

The regulator's nod is mandatory for any company to launch a public offer.

The IPO would comprise at least 25 per cent of equity capital, giving a valuation of Rs 2,800 crore to Bharat Business Channel.

Bharat Business Channel 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."

with inputs from PTI