Breaking News Videocon D2H to Launch its IPO Soon : Reuters

[IndianMascot]

• Plans to file draft share sale prospectus by end-Nov
• IPO expected to be launched in first half of 2013
• Videocon D2H plans to use proceeds for business expansion

The satellite TV broadcast services arm of India's Videocon Group plans to raise between $150 million and $200 million through an initial public offering of shares, four sources with direct knowledge of the matter said.

The unit, Videocon D2H, has picked Swiss bank UBS and Indian investment banks Enam Securities and ICICI Securities as advisors for the shares sale, said the sources, declining to be named as they were not authorized to speak to the media.

The company plans to file the draft prospectus for the share offering by the end of next month and launch it in the first half of next year depending on market conditions, two of the sources told Reuters.

Billionaire Venugopal Dhoot, who controls Videocon Group that has interest in consumer electronics, telecoms and power, declined to comment.

Videocon D2H launched its operations in 2009. Its rivals include Tata Sky, a joint venture between India's Tata Group and News Corp owned British Sky Broadcasting, and Airtel DTH from Bharti Airtel.

The founders of Videocon D2H were earlier in talks with some private equity firms to raise between $75 million and $100 million by selling a stake in the unit, sources said in November last year.

"The plan to rope in private equity players has been dropped as the company did not get a good valuation," one of the sources said on Wednesday. "The improved business outlook has triggered the share sale plans."