Asianet Satellite Communications files draft papers for Rs 765-crore listing

Asianet Satellite Communications IPO

Internet service provider Asianet Satellite Communications has filed the draft red herring prospectus with the capital markets regulator Sebi to raise Rs 765 crore through a public issue.

The initial public offering comprises a fresh issuance of shares worth Rs 300 crore, and an offer-for-sale of Rs 465 crore by promoter Hathway Investments.

The company will utilise the fresh issue proceeds for repaying debts, expansion of network infrastructure, and general corporate purposes, according to the draft papers.

Click Here To Know All IPO Related News

Asiannet is one of the leading internet service providers (ISP) offering broadband internet service and also a multi-system operator (MSO) offering digital cable television services.

It is predominantly present in Kerala and has operations in Tamil Nadu, Karnataka, Telangana, Andhra Pradesh, Odisha and Maharashtra.

Also read - Metro Brands lists at 13% discount. What should investors do now?

Established in 1992, Asiannet is among the top three fixed broadband providers in Kerala with a market share of approximately 19 percent in FY21. Its cable television business, which is carried out by subsidiary Asianet Digital Networks, was among the top 13 MSOs/HITS operators in India as of June 2021.

Asianet Satellite has recorded significant growth in profit at Rs 31.03 crore for FY21, compared to Rs 0.29 crore a year back. Revenue from operations also jumped to Rs 510.06 crore from Rs 450.9 crore in the same period.

Also read - Medplus Health Services trades at double-digit premium in grey market ahead of listing day

Profit in six months ended September 2021 stood at Rs 16.67 crore on a revenue of Rs 291.3 crore. Since February 2020, the growth of its broadband business has further accelerated due to the COVID-19 pandemic driven by factors such as working from home, learning from home, entertainment and e-commerce.

Promoters and promoter group – Viren Rajan Raheja, Akshay Rajan Raheja, Coronet Investments, Hathway Investments, and Bloomingdale Investment and Finance – held 87.67 percent stake in the company, while public shareholders own the rest.

Click Here To Know The Latest Subscription Figures of CMS Info Systems IPO

Axis Capital and Nomura Financial Advisory and Securities (India) are appointed as the book running lead managers to the issue. Link Intime India will act as a registrar for the IPO.