Bharat Business Channel, the direct-to-home (DTH) TV arm of Videocon Group, has received Securities and Exchange Board of India (SEBI)’s nod for its proposed Rs 700 crore Initial Public Offering (IPO). It is also considering to mop-up Rs 50 crore through a pre-IPO placement of its shares to institutional investors.
Videocon’s subsidiary had filed its Draft Red Herring Prospectus (DRHP) with SEBI in December last year through its lead manager Enam Securities.
The proposed IPO would comprise at least 25% of equity capital, giving a valuation of Rs 2,800 crore to Bharat Business Channel. The company plans to utilize these funds for acquisition of set-top boxes, outdoor units and accessories thereof, repayment/prepayment of certain indebtedness and general corporate purposes.
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