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Tag: initial public offering (IPO)

  • Videocon d2h plans to launch IPO by Feb 2015

    Videocon d2h plans to launch IPO by Feb 2015

    MUMBAI: A few days ago, Videocon d2h files paper with the Securities and Exchange Board of India (SEBI) to raise Rs 700 crore through an initial public offering (IPO).
    Rs 350 crore will be used to acquire STBs, outdoor units and accessories from TEL, a Videocon Group entity and Rs 175 crore to repay debt.

     

    In a recent interview to CNBC TV18, Videocon Industries CMD Venugopal Dhoot has said that it will launch the IPO in the first quarter of 2015.

     

    “We hope to launch it in January or February maximum, market is good and Videocon d2h has been number one since beginning in customer acquisition from where it started and now it has become number one in customer acquisition,” he said adding that it is looking at doubling its subscriber base within five years. Dhoot highlighted that it currently has 9 million subscribers but will soon become a ‘super profitable company’.

     

    Dhoot also said that the average revenue per user (ARPU) of Videocon d2h was the same as Dish TV, but a little less than Tata Sky. While speaking at a session at indiantelevision.com’s IDOS 2014, Videocon d2h CEO Anil Khera had said that its ARPU in phase III and phase IV cities have touched Rs 220.

     

    This is Videocon’s second attempt at the IPO. It had got SEBI’s approval in 2012 but didn’t go ahead with it due to unfavourable market conditions. Seven banks including UBS, Axis Capital, ICICI Securities, SBI Capital Markets, Yes Bank, IDBI Capital are managing the share sale.

     

    The company is also considering a preferential issue of up to 5,000,000 equity shares, aggregating up to Rs 50 crore with certain investors.

  • Videocon d2h plans Rs 700 crore IPO by Diwali

    Videocon d2h plans Rs 700 crore IPO by Diwali

    MUMBAI: It has been seeking to make a public offering over the past two years, but market conditions have forced it to delay it time and again. But with the new Modi government generating a bullish sentiment in both the economy and the stock markets, the Videocon group’s direct to home operation Videocon d2h has finally decided to take the public listing route once again.

     

    Videocon Industries chairman &MD Venugopal Dhoot told a couple of business news  channels late last week that the DTH operator’s IPO is planned for sometime during Diwali this year and it has filed a fresh prospectus  with the Securities Exchange Board of India (SEBI), as the earlier one has lapsed.

     

    Dhoot pointed out to one of the business news channels that “Videocon d2h has been No1 in customer acquisition since it began. We have around 11 million subscribers today and we are wanting to take that up to 20 million. Hence we require some Rs 600 crore to Rs 700 crore which we will raise from the public to fuel expansion, growth and deliver value added services to consumers.”

     

    His view is that around 15 per cent or so of Videocon d2h’s equity might be diluted to raise the funds, though the premium for public offering has not yet been decided. He, however, expects the d2h IPO to do well, as organic demand for DTH is only going to grow with the government mandated digitisation gathering pace, especially in rural areas. 

     

    He emphasised that the DTH operator is on course to report a positive EBIDTA in Q1 2015, following planned losses over the past few years. “When you begin DTH you have losses in the beginning. But once you start generating positive EBIDTA, it continues,” he said.

     

    Dhoot also spoke highly about the first mover advantage Videocon d2h has in announcing its 4K or ultra HD service for Indian customers which it hopes to launch by Diwali too. Tata Sky, too announced last week that it will roll out its 4K transmission by early 2015.

     

    But Dhoot is confident about Videocon d2h’s success. Said he: “Our DTH quality has been very good, service is very prompt and people across India have liked it because our brand is very popular and at low cost we can distribute the same. In India and across the globe, DTH has been very successful and we are already getting a good response from the market for our IPO.”