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The Securities and Exchange Board of India (Sebi) has sought fresh clarifications from the merchant banker of Videocon d2h Ltd, satellite television arm of the Videocon Group, regarding its proposed Rs 700-crore initial public offering (IPO). According to a weekly update to the processing status of draft offer documents filed with Sebi, the regulator, without disclosing details, has said clarifications are awaited on the IPO of Videocon d2h, which provides direct-to-home TV services, as on January 9.
The status is updated on a weekly basis and the next update is due on Friday, to be uploaded on Sebi’s website the next working day. Sebi said it might issue observations on draft offer document within 30 days from the date of receipt of Videocon d2h's satisfactory reply to the clarification or additional information sought from it.
Sebi had sought a clarification from Videocon d2h’s lead manager, Axis Capital, earlier this month. The latest communication between the regulator and merchant banker took place on January 6 this year. The regulator had received the draft offer documents on September 30 through the lead manager.
The company's proposed 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.
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.
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."
Other players in the business include Tata Sky, Dish TV, Sun Direct and Airtel Digital TV.
This is the company's second attempt to enter the capital markets.
Earlier in December 2012, it had filed draft documents under the name 'Bharat Business Channel' with Sebi to raise Rs 700 crore through an IPO. However, the company did not launch the same due to bad market conditions.
