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.