Bharat Business Channel, the direct-to-home TV arm of Videocon Group, has received the go-ahead from the Securities and Exchange Board of India for its proposed Rs 700-crore initial public offering.
The company had filed its draft red herring prospectus (DRHP) with SEBI in December last year for the proposed public offer. Enam Securities was the lead manager for the issue.
The market regulator had issued its final observations on the draft offer document on March 15, which is necessary for companies to launch any public offer.
The company also plans to mop-up Rs 50 crore 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 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.”