(19 June 2010 7:20 pm)

MUMBAI: Cable TV operators are queuing up to tap the market as they work out their digitisation plans.

Joining the wave is Sea TV Network, a leading multi-system operator (MSO) in Agra, with plans to raise Rs 502 million through a public float.

“We will be raising Rs 502 million through an initial public offering (IPO). The exact amount we will dilute will depend on the pricing of the issue,” says Sea TV Network founder-promoter Neeraj Jain.

Sea TV Network, facing competition from the direct-to-home (DTH) operators and Ashmore-backed Digicable Network (India), intends to invest Rs 275 million in setting up a complete digital head-end.

The MSO proposes to pump in Rs 52.8 million for setting up network for IPTV solution and Rs 65.6 million for laying underground optical fibre capable of digital transmission throughout Agra city and adjoining areas.

The total funding requirement, including meeting the expenses of the IPO issue, is Rs 596.5 million. Besides the proposed initial public offering, Sea TV Network will also raise term loans and fund from internal accruals.

The fund requirement has been appraised by Allahabad Bank.

Among those planning to list is Citigroup Venture Capital-controlled cable broadband service provider You Broadband and Cable. The company plans to raise Rs 3.58 billion through an IPO, joining a troop of cable companies such as Den Networks and Hathway Cable and Datacom that have tapped the capital market in recent times.