Asianet Satellite Communications has filed a red herring prospectus with the Securities and Exchange Board of India (SEBI)to raise Rs 765 crore through a public offering.
The company is one of the biggest broadband internet service providers and multi system operators (MSO) offering digital cable television services across Kerala.
According to the draft red herring prospectus (DRHP), the initial public offering (IPO) includes a fresh issue of equity shares totaling Rs 300 crore, and an offer by Hathway Investments of up to Rs 465 crore.
What is Draft Red Herring Prospectus (DRHP)?
The Draft Red Herring Prospectus (DRHP) is a document used to introduce a new business or product to prospective investors. It should be able to convey the product vision and the target audience. A DRHP is used as a loose framework for the initial stages of the IPO process. SEBI mandates that companies launching an IPO share certain information about their business, financials, risks, etc. via a document called the Red Herring Prospectus.
The company intends to use proceeds from the fresh issue to the tune of Rs 160 crore for part debt repayment, Rs 75.04 crore for working capital requirements and general corporate purposes. From Rs 450.91 crore in the financial year 2019-20, the company’s revenue from operations rose to 13.12 percent ie Rs 510.07 crore in the financial year 2020-21, primarily due to an increase in broadband subscriptions.
The company’s annual profit for fiscal 2021 increased to Rs 31.03 crore from Rs 0.29 crore.
The book running lead managers are Axis Capital Limited, Nomura Financial Advisory, and Securities (India) Private Limited.
