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Tag: SEBI

  • SEBI asks for clarification from Videocon d2h for its proposed Rs 700 crore IPO

    SEBI asks for clarification from Videocon d2h for its proposed Rs 700 crore IPO

    MUMBAI: Direct to home (DTH) operator Videocon d2h has been in the news for its proposed Rs 700 crore initial public offer (IPO) for long and now the Securities and Exchange Board of India (SEBI) has asked for clarifications from the merchant banker of the DTH operator.  

    While the last date on which communication by SEBI was issued or received was 2 January, the board, today, without disclosing the details said that the clarifications from lead manager (LM) are still awaited.  

     

    The observations on the draft offer document may be issued by the board within 30 days from “the date of receipt of satisfactory reply from the lead merchant bankers, where the board has sought any clarification or additional information from them,” reads SEBI notice.

    It was on 30 September that the board received the draft offer from Videocon d2h through its lead manager Axis Capital.

     

    As per several media reports, while the DTH company has proposed IPO estimates to raise Rs 700 crore, it is also considering to mop-up Rs 50 crore through a pre-IPO placement of its shares to institutional investors.

     

    “While the company has not disclosed the total number of shares to be sold in IPO, the pre-IPO placement could be of 50 lakh shares,” says a PTI report.

     

    It was in October when Videocon d2h filed for its IPO. The company had then said that it plans to spend a portion of the Net Proceeds of the issue towards acquisition of set-top boxes, outdoor units and accessories thereof from TEL, a Videocon Group entity.

     

    The company commenced DTH operations in July 2009 and has grown its subscriber base from 0.44 million gross subscribers as of 31 March 2010, to 11.21 million gross subscribers, as of 30 June 2014, which represents approximately 16.2 per cent of the total DTH subscriber base in India.

     

  • Ortel Communications files DRHP with SEBI for IPO worth Rs 360 crore

    Ortel Communications files DRHP with SEBI for IPO worth Rs 360 crore

    MUMBAI: Odisha based last mile owner (LMO) Ortel Commnications has filed its draft red herring prospectus (DRHP) for its proposed initial public offering (IPO) with the securities and exchange board of India (SEBI). Ortel Communications CEO BP Rath confirmed the news to indiantelevision.com.

     

    The LMO is looking at a public issue of 14,182,598 equity shares of face value of Rs 10 each. The IPO may raise as much as Rs 360 crore.

     

    It consists of 60 lakh shares from the company and an offer for sale of up to 81.82 lakh shares by New Silk Route (NSR) that currently owns a 35 per cent share in the LMO. This would mean Ortel ending up with nearly Rs 150 crore and NSR exiting with Rs 200 crore.

     

    The deal is being handled by Kotak Mahindra Capital. It also has the option for a pre IPO sale of up to 25 lakh equity shares to generate up to Rs 65 crore.

     

    NSR has been keen to exit the business for quite some time. With this fresh infusion that Ortel is expecting, the LMO plans to grow its cable and broadband business in Odisha as well as neighbouring states such as Andhra Pradesh, Chhattisgarh, West Bengal etc.

  • Network18 gets independent directors’ approval for open offer

    Network18 gets independent directors’ approval for open offer

    MUMBAI: A day after TV18 got the nod by the Committee of Independent Directors (IDC) for the open price offer, now even Network18 Media and Investments has got the approval from the IDC for the open price offer made by the Independent Media Trust (IMT).

     

    The green signal for the open price offer was given by IDC chairman Manoj Mohanka and its member Hari S Bhartia.

     

    The offer was made by IMT along with Reliance Industries (PAC1) and Reliance Industrial Investments and Holdings (PAC2) to the public shareholders of Network18 to acquire up to 22,99,46,996 equity shares at a price of Rs 41.04 per share. The manager to the offer is JM Financial Institutional Securities. 

     

    The announcement was made through a statement on BSE. “IDC believes that the open offer is fair and reasonable and in line with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011,” says the statement submitted to the BSE.

     

    The approval for the open offer was made after the IDC reviewed (a) the public announcement in connection with the offer dated 29 May 2014 issued on behalf of IMT and the PAC’s public announcement; (b) the detailed public statement in connection with the offer published on behalf of IMT and PAC’s on 5 June 2014 and (c) the draft letter of offer (DLOF) dated 11 June 2014.

     

    The offer price, according to the IDC, is higher than the volume weighted average price of the equity shares for a period of 60 trading days immediately preceding the date of public announcement. The IDC also sought external financial advice from Price Waterhouse & Co which advised that as of 29 May 2014, the offer price pursuant to the offer is fair and reasonable from the financial point of view.

  • TV18 gets independent directors’ nod for Reliance open offer

    TV18 gets independent directors’ nod for Reliance open offer

    MUMBAI: The Committee of Independent Directors (IDC) linked with TV18 Broadcast has green signaled the open price offer made by Independent Media Trust (IMT) to public shareholders. The go ahead was given by IDC chairman Manoj Mohanka and IDC member Hari S. Bhartia.

     

    The offer made by IMT along with Reliance Industries Limited (persons acting in concert – PAC1) and Reliance Industries Investments and Holding Limited (PAC2) to the public shareholders of TV18 Broadcast was to acquire up to 44,65,10,110 equity shares at a price of Rs 30.18 per share. JM Financial Institutional Securities is the manager of the offer.

     

    The announcement was made through a notice issued by TV18 to the BSE which stated that the IDC “believes that the open offer is fair and reasonable and in line with the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.”

     

    According to the IDC, the offer price is higher than the volume weighted average price of the Equity Shares for a period of 60 trading days immediately preceding the date of public announcement. The IDC also gave the go ahead after it sought external financial advice from Price Waterhouse & Co that advised that as of 29 May 2014, the offer price pursuant to the offer is fair and reasonable from the financial point of view.

     

    The approval for the open offer was made after the IDC reviewed (a) the public announcement in connection with the offer dated 29 May 2014 issued on behalf of IMT and the PAC’s public announcement; (b) the detailed public statement in connection with the offer published on behalf of IMT and PAC’s on 5 June 2014 and (c) the draft letter of offer (DLOF) dated 11 June 2011.

  • Jaico Publishing earmarks over twice the marketing spend for ‘Sahara: The Untold Story’

    Jaico Publishing earmarks over twice the marketing spend for ‘Sahara: The Untold Story’

    KOLKATA: It isn’t often that a publishing house sets aside over two times its marketing expenditure for a book. Unless of course, the book in question is ‘Sahara: The Untold Story’ by eminent journalist and deputy managing editor of The Mint, Tamal Bandopadhyay. Jaico Publishing House has done just that.

     

    Not surprisingly, the Facebook page dedicated to the tome has garnered more than 8,300 likes within weeks of its appearance. Plans are underway to upload videos of the book launch apart from advertising on national television channels like CNBC and CNN IBN and in flyers and newspaper inserts in cities where the book will be launched next including Pune, Lucknow and Ahmedabad.

     

    On why Jaico has earmarked so much moolah, ‘Sahara: The Untold Story’ publisher Akash A Shah told indiantelevision.com, “We are looking at selling around 20,000 copies in a few weeks of the launch and this book has the potential to sell 50,000-60,000 copies in the next two to three months. We are targeting serious readership.”

     

    Shah spoke to this website on the sidelines of the book’s launch in Kolkata. “Seeing the potential of the book as compared to others, we are spending more on it, that is, around two times as compared to other books,” he added. The launch itself proved innovative with Bandopadhyay doing a mock interview with Sahara’s Subrata Roy as portrayed by Bengali actor Kaushik.

     

    Ever since being published, the book has been at the centre of much controversy, what with Jaico and Bandopadhyay dragged to court along with a stay order on the book and a Rs 200-crore defamation suit filed. Especially after the suit, people have been even more curious about the book. The ban was lifted after Sahara withdrew its legal suit against the publisher, with the condition that the book would carry a disclaimer by Sahara Group.

     

    Painstaking research has gone into demystifying the country’s most enigmatic and largely unlisted conglomerate, the Sahara India Pariwar, in a book that goes behind the curtains of every good, bad and ugly event that occurred in the past 30 years of the Sahara dynasty. ‘Sahara: The Untold Story’ also delves into the group’s ongoing legal battle with market regulator SEBI.

     

    “The issue discussed in the book is set to garner attention from the financial fraternity as well as regulators and academia. Though it essentially is a tussle between the regulator and the company, it will also be viewed as a game. Hence, the publisher is seen using the gimmick of marketing to ensure that the book reaches all those concerned with the subject using all aspects of the media,” said a city-based expert.

  • Sri Adhikari Brothers to raise Rs 100 crore

    Sri Adhikari Brothers to raise Rs 100 crore

    MUMBAI: It is one of the more successful Indian-origin companies in the media industry that delved into the comedy genre with SAB TV, which it sold to the Sony Entertainment Television in India. It followed that up with niche channel forays, the most recent of which is a Marathi comedy and music channel Maiboli. Now, Sri Adhikari Brothers Television Network Ltd (SABTNL), has once again drawn up ambitious expansion plans and has decided to raise funds of upto Rs 100 crore to bankroll them.

     

    In a disclosure to the Bombay Stock Exchange, SABTNL  says that it will be offering 100 lakh warrants with an option to subscribe for equivalent number of equity shares of Rs 10 each at a price that may be determined by SEBI regulations. The warrants are to be issued on a preferential basis to the persons in the promoter group and others.

     

    The purpose of the fund raising exercise, says SABTNL, is to meet general long term financial and working capital needs and also to expand its successfully growing broadcasting business. The plans are subject to shareholder approval  which it will be seeking through postal ballot.

  • RBNL to seek shareholder approval for delisting

    RBNL to seek shareholder approval for delisting

    MUMBAI: As the stock markets closed today, those in the trade saw the Reliance Broadcast Network (RBNL) shares go down from the opening of Rs 52.35 to Rs 49.05 at close. The stock was dragged down by the news that the Anil Ambani group company had got board approval to delist from the stock exchanges.

    It is to be noted that the ADA group which had a 72 per cent shareholding in RBNL earlier but has since reportedly taken that up to 75 per cent will now have to buy out another 15 per cent of floating stock from the public in order to meet the 90 per cent promoter holding requirement set by Securities Exchange Board of India (SEBI) for complete delisting. Estimates are that the tab for buying up the full public shareholding for the ADA group will be in the region of Rs 100 crore.

    RBNL is involved in various media segments which includes: Radio (92.7 Big FM), television broadcasting (Big CBS,  Big Magic, Big RTL Thrill), outdoor (Big OOH), Experiential marketing and production (Big Production).  Its radio business is among the front runners in the country and proftable, while its television vertical is yet to make a substantial impact in the broadcasting firmament, though it accounts for about 30 per cent of its revenues.

    “The management of RBNL wants to re-structure the company,” says a financial analyst. “And it’s easier for the company to do so if it is not in the public domain; you can avoid following many listing guidelines; you don’t need shareholder and SEBI and stock exchange permissions to make changes if it delists and goes private once again.”

    RBNL officials refused to make any comments. But a perusal of the company’s latest quarter financials on a consolidated basis shows that it is continuing to make losses though they are being shaved year on year and quarter on quarter. In Q1 to June 2013, it generated total revenues of Rs 61.13 crore and a net loss of Rs 15.76 crore as against a revenue of Rs 65 crore and a loss of Rs 24.15 crore in the previous preceding quarter. In its previous full financial year to March 2013, its revenues were at Rs 233.53 crore with losses at Rs 91 odd crore.

    As per the board meeting held yesterday, the company will now seek approval of its shareholders through a postal ballot in terms of the SEBI delisting regulations.

  • Govt initiates steps to help Hindustan Photo Films

    Govt initiates steps to help Hindustan Photo Films

    NEW DELHI: Hindustan Photo Films Manufacturing which has for long suffered as being on the list of sick industries is one of the six companies to be given the minimum public shareholding of 10 per cent requirement under a proposal accepted by the Union Cabinet.

     

    The Cabinet Committee on Economic Affairs has approved creation of the Special National Investment Fund for the specific objective of meeting the minimum public shareholding of 10 per cent requirement in six Central Public Sector Enterprises (CPSEs).

     

    Hindustan Photo Films has for years been responsible for supplying raw stock to filmmakers.

     

    Since these Companies were not financially sound, it was found difficult to meet the minimum public shareholding by following SEBI approved methods. However, government was keen to comply with the requirement in all government companies. The Department of Disinvestment discussed the matter with SEBI and has proposed to meet the minimum public shareholding in the above six Companies.

     

    The salient features of the fund are:

     

    (i) The number of shares that is required to make the six companies compliant with the minimum public shareholding will be transferred to the Special National Investment Fund out of government of India shareholding on irrevocable basis without any consideration.

     

    (ii) The Fund will be managed by independent professional fund managers.

     

    (iii) The Fund will sell the shares within a period of five years.

     

    (iv) The funds realised from the sale of shares would be used for social sector schemes of the government.

     

    (v) The modalities of the sale of shares in the fund would be decided by the existing EGoM.

     

    Under the Securities Contracts (Regulations) (Second Amendment) Rules 2010 of 9 August 2010, all government companies are required to have at least 10 per cent public shareholding and where public shareholding is less than 10 per cent, the companies were required to comply with this condition within a period of three years by following methods permitted by SEBI for this purpose.

  • Sahara India asked to file reply in two weeks on SEBI Ad case

    NEW DELHI: The Lucknow bench of the Allahabad High Court has asked Sahara India and Subrata Roy Sahara to file within two weeks its reply to the public interest litigation alleging that a full page advertisement dated 17 March 2013 by Sahara India Parivar alleged to be against the provisions of law.

    Justice Uma Nath Singh and Justice Dr Satish Chandra passed the order on the PIL filed by IPS officer Amitabh Thakur and social activist Nutan Thakur which says that a private person and a private organisation have openly denigrated and accused Sebi, which is a statutory body established to safeguard the interests of investors and to act as the market regulator.

    The ad has also allegedly criticised Justice B N Agarwal’s conduct while both Sebi and Justice Agarwal are only performing their official duty. The matter is still sub-judice before the Supreme Court and hence these people could have presented their grievance there.

    This act of criticising Sebi through an ad prima-facie is alleged to be a criminal misconduct under sections 186 and 189 IPC and provisions of Companies Act 1956.

    The petitioners’ counsel Ashok Pande sought a complete ban on all advertisements where any constitutional or statutory body is criticised. He also asked for enquiry into the issue and necessary subsequent legal actions against Sahara India Parivar and Subrata Roy.

  • Videocon’s DTH arm plans to raise Rs 7 bn via IPO

    Videocon’s DTH arm plans to raise Rs 7 bn via IPO

    MUMBAI: Videocon has taken the leap to list its direct-to-home (DTH) arm, Bharat Business Channel Ltd, to cash in on the digitisation wave.

    Bharat Business Channel Ltd, which operates its DTH business under the Videocon d2H brand, is planning to raise Rs 7 billion through an initial public offering (IPO). The company has filed its documents with market regulator Securities and Exchange Board (Sebi).

    The company is also looking at raising Rs 500 million through a pre-IPO placement of its shares to institutional investors.

    The promoters (the Dhoot family) had earlier issued rights issue at Rs 50 a share. A similar IPO pricing would lead to a 36 per cent dilution, pegging the value of the company at Rs 19 billion. But the promoters, it is understood, are looking at a higher valuation as they tap the capital.

    Starting operations in July 2009, Bharat Business Channel has a gross subscriber base of 6.62 million as of 30 September 2012.

    The company has a negative net worth of Rs 5.90 billion as of 30 September 2012, reporting net loss of Rs 11.40 billion in the last three fiscals. In the first half of this fiscal, it had a net loss of Rs 2.70 billion on revenue of Rs 4.93 billion.

    The government has mandated digitisation across the country by 31 December 2014, leading to a huge funding requirement among cable TV operators and DTH companies.