The proposed Rs 700-crore IPO of Videocon D2H may get delayed as the regulator Sebi has decided to keep the processing of the offer document in "abeyance" following a request made by the company in this regard.
"Processing of the offer document (has been) kept in abeyance as requested by Lead Manager," Sebi said in an update on processing status of pending IPO offer documents. Earlier, Sebi had sought clarifications from the lead manager of the issue, for which the company had filed draft offer documents on September 30, 2014.
Videocon D2H Ltd, the satellite television arm of Videocon Group, wrote to Sebi about the issue on February 9, requesting to keep the processing in abeyance.
However, it could not be ascertained immediately what was the reason for such a request. The company, in September, filed its draft documents with Sebi to raise Rs 700 crore through proposed initial public offer (IPO).
It is also considering to mop up Rs 50 crore through a pre-IPO placement of its shares to institutional investors. While the company has not disclosed the total number of shares to be sold in IPO, the pre-IPO placement could be of 50 lakh shares.
The funds raised through the proposed public offer would be utilised 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 is 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.
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