Videocon d2h expects 7-8 per cent of new DTH subscribers to purchase HD subscription packages. Approximately 30 television channels are available in HD apart from sports and movie channels.
Videocon d2h brand owner Bharat Business Channel has 6.62 million gross subscribers (including inactive subscribers) as of 30 September 2012. The company started operations in July 2009.
The company has filed a draft prospectus with the Securities and Exchange Board of India (Sebi) for its IPO and would be listing its shares on the Bombay Stock Exchange.
Videocon d2h will use Rs 695.85 million of the IPO proceeds to repay or prepay part of its debt from banks and the remaining for general corporate purposes.
As of October 31, 2012, Bharat Business Channel had outstanding secured indebtedness of Rs 16.62 billion from banks and indebtedness of another Rs 2.25 billion from Videocon Industries.
The company plans to raise Rs 500 million through sale of equity before the IPO. If the pre-IPO placement is completed, the public issue size will be reduced to the extent of such placement, subject to the public issue size constituting at least 25 per cent of the post-Issue paid-up equity share capital of the company.