Cable TV

Ortel IPO closes; goes through by a whisker

MUMBAI: It was meant to be a test of whether investors have confidence in the media – and more specifically in India’s relatively nascent cable TV sector. And the verdict is that while retail and HNI investors don’t, institutional investors definitely do.

We are referring to the Ortel Communications IPO which closed today. The regional cable TV MSO which approached the market to raise funds for its growth plans, said in a statement, quoting a Kotak Mahindra Capital spokesperson: ““The Ortel IPO has been successfully closed today. Ortel has successfully raised its entire primary capital requirement as stated in the IPO Red Herring Prospectus, along with providing partial exit to New Silk Route (NSR). The QIB segment has been fully subscribed with participation from  Mutual Funds and Insurance companies.The net under subscription in the HNI and Retail segments will reduce the offer for sale component by NSR.”

Simply translated the latter part of that statement means that NSR – its private equity investor – had decided to cut back on the amount of shares it was offering to the public.

At the time the IPO commenced with the price band at Rs 181-200, 12 million shares were on offer for investors. Six million of these were coming from the NSR stable, while Ortel was issuing another six million freshly. With Kotak Mahindra Capital as the issue manager, Ortel managed to rope in  Axis Mutal Fund and ICICI Prudential came in as anchor investors. Both picked up 2.55 million shares (0.9 million to Axis and 16.55 million by ICCI) for Rs 46.2 crore at the lower range of the price band.

That left about 9.45 million shares on offer to qualified instituitional bodies (QIBs) and retail/HNI investors. Bids were received for 7.12 million shares of these by day three of the issue. Thus the public offer was subscribed up to 0.75 time. Overall,  9.68 million shares, including the anchor component,  were lapped up totally or 81 per cent of the issue. The QIBs totally subscribed to what was available for them.

NSR, which was making a secondary sale, decided to lop off the the  shares it was selling 3.67 million, meaning only 61 per cent of its offer was subscribed. It was aiming to raise Rs 108-120 crore through the offfer.

Ortel, on its part, was was looking at raising  Rs 120 crore through the fresh issue.

The Kotak Mahindra spokesperson told that the retail investors don’t really understand the potential of cable TV while institutional investors do. “Hence, the QIB portion has been totally subscribed. Ortel has managed to raise all the growth capital it needs for the next two to three years,” he said. “Hence, retail investors who missed this IPO will have to opt for secondary market purchases.”

Estimares are that Ortel would end up raising around Rs 175 crore crore through the IPO. But the final tally totted up to Rs 175 crore-odd, according to Press Trust of India reports.

Latest Reads
Subscription revenue drives up Den’s PAT

Multi-system operator (MSO) Den Networks’ financial results for Q3 2018 show consolidated revenue of Rs 330 crore as against Rs 293 crores in the corresponding quarter a year ago, up by 12 per cent. In Q2 2018, consolidated revenue stood at Rs 328 crore.

Cable TV Multi System Operators
Hinduja Ventures board okays amalgamation with Grant Investrade

Hinduja Ventures Ltd's (HVL) the board of directors has approved the amalgamation of Grant Investrade Ltd (GIL), a wholly owned subsidiary, into the company.

Cable TV Multi System Operators
Kolkata cable operators want cable TV GST at 5%

MUMBAI: The plea of cable TV operators in Kolkata to reduce the goods and services tax (GST) from the current 18 per cent to 5 per cent has been heard.

Cable TV Local Cable Operators
Den Networks buys 51% in VBS Digital

MUMBAI: Multi-system operator Den Networks Ltd (Den) has acquired 51 per cent stake in cable televison distributor VBS Digital Distribution Network Pvt Ltd (VBS Digital) for Rs 2.64 crore in cash. According to Den's release to the Bombay Stock Exchange, the deal will strengthen the company’s cable...

Cable TV Multi System Operators
TiVo's next-gen solution to help cable operators retain customers

MUMBAI: TiVo Corporation has launched Next-Gen Platform, a range of cloud-based products with a unified backend to help operators stay ahead of the game. The platform can be deployed for QAM, hybrid and IPTV to anticipate and quickly address customer needs.

Cable TV Local Cable Operators
Ortel to move broadband business to new entity

Multi-system operator Ortel Communications Ltd plans to incorporate a new wholly owned subsidiary, Ortel Broadband Ltd, in order to operate the broadband business separately.

Cable TV Multi System Operators
DEN Networks tops as most attractive Cable TV brand: TRA Research

DEN Networks Ltd, one of the largest cable MSOs in India, is the top cable brand according to the "Most Attractive Brands 2017" report by Trust Research Advisory (TRA)

Cable TV Multi System Operators
Government to once again make MHA clearance compulsory for MSOs?

Every multisystem operator (MSO) which is licensed with the ministry of information & broadcasting (MIB), will now have to also seek the ministry of home affairs' s (MHA's) ecurity clearance. A notification to this effect is being planned and passed by the Narendra Modi government.

Cable TV Multi System Operators
MSOs move Madras HC seeking relief on inter-connect pacts

MUMBAI: The All India Digital Cable Federation (AIDCF) had filed a petition in the Madras High Court few days back pleading a directive to broadcasters to maintain a status quo on renegotiating agreements between TV channels and MSOs till a final judicial call was taken on TRAI’s new tariff regime...

Cable TV Multi System Operators

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories