Market regulator Securities and Exchange Board of India (Sebi) has given a nod to the proposed 700 crore initial public offering (IPO) of Bharat Business Channel, a Videocon Group's direct-to-home TV arm.
The company had filed its draft red herring prospectus (DRHP) with SEBI in December last year for the proposed public offer. SEBI issued its final observations on the draft offer documents on March 15, as per the latest update by the market regulator. The regulator's observations are necessary for the companies to launch any public offer. The regulator had received the draft offer documents on December 14 through its lead manager Enam Securities.
The company's proposed initial public offer (IPO) estimates to raise Rs. 700 crore. It is also considering to mop-up Rs. 50 crore through a pre-IPO placement of its shares to institutional investors. The proposed IPO would comprise at least 25 per cent of equity capital, giving a valuation of Rs. 2,800 crore to Bharat Business Channel.