Videocon D2H withdraws Rs 700 cr IPO application

Direct to Home services provider Videocon D2H has withdrawn its Rs 700-crore initial public offer proposal amid reports that it plans to start a fresh process to hit the capital markets.

The company had filed draft offer documents with the Securities and Exchange Board of India for the proposed IPO in in September last year.

However, the company through its lead merchant banker Axis Capital withdrew its offer documents on March 27 this year, as per the latest update available with Sebi.

The regulator, in February, had decided to keep the processing of the company's offer document in "abeyance" following a request made by Videocon D2H in this regard.

Videocon D2H Ltd, the satellite television arm of Videocon group, got listed on the Nasdaq last month. This is the first Indian media company to list overseas and the largest Indian IPO in the US in over eight years.

The company is reportedly planning to file fresh papers with Sebi to float an IPO. Earlier, the company had filed draft documents with Sebi in September last year to garner Rs 700 crore through the IPO. It was also considering to mop up Rs 50 crore through a pre-IPO placement of its shares to institutional investors.

The company was planning to raise fund 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 was 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.