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Bharat Business Channel Ltd, the satellite broadcasting arm of Videocon group, is likely to raise Rs.700 crore through an initial share sale in mid-February at Rs.60-70 per share, said a person familiar with the development. The DTH arm filed its draft offer in December.
“It should take about 30 days for the Securities and Exchange Board of India (Sebi) to complete the approval process. The company and book runners are paying specific attention to pricing of the issue to get a good response to the IPO,” said the person cited above.
The company has also arranged a loan of Rs.1,200 crore for business expansion and retirement of existing debt, the same person said.
Videocon chairman Venugopal Dhoot and Saurabh Dhoot, a director at Videocon group, declined to comment on the matter. A senior company official, on condition of anonymity, said Videocon “is very keen on doing the IPO in February as the market is good”. The BSE benchmark Sensex ended trading at a two-year high of 20,039 points on Friday.
“Pricing is very critical right now as the market sentiment is improving. If the offer price for Bharat Business Channel is fixed around Rs.70, the issue should find success. The Bharti Infratel issue did not see much success due to inappropriate pricing but the Care (Ltd) issue got a great response,” said an investment banker with a domestic firm who spoke on condition of anonymity.
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