Leading internet service provider Asianet Satellite Communications Ltd has filed preliminary papers with capital markets regulator Sebi to raise Rs 765 crore through an initial share sale.
The initial public offering (IPO) consists of a fresh issue of equity shares aggregating to Rs 300 crore, and an offer for sale of up to Rs 465 crore by Hathway Investments, according to the draft red herring prospectus (DRHP). Proceeds from the fresh issue to the tune of Rs 160 crore will be used for part debt payment, Rs 75.04 crore for funding working capital requirements, and general corporate proposes.
The company is one of the leading internet service providers offering broadband internet service and multi-system operators offering digital cable television services, predominantly present in Kerala. The company’s revenue from operations grew 13.12 per cent to Rs 510.07 crore in the financial year 2020-21, from Rs 450.91 crore in the financial year 2019-20 primarily due to improvement in revenue from its broadband business mainly as a result of an increase in broadband subscribers.
Its annual profit for fiscal 2021 rose to Rs 31.03 crore from Rs 0.29 crore. Axis Capital Limited, Nomura Financial Advisory, and Securities (India) Private Limited are the book running lead managers to the issue.