MUMBAI: Videocon d2h, the DTH arm of Videocon Group, has raised $325 million worth of American depositary receipts (ADR) it sold to US-based Silver Eagle Acquisition Corp SEAC), and will list on Nasdaq on Tuesday. Videocon d2h expects its market cap to touch $1.2 billion when it lists on the Nasdaq. Dish TV, India’s largest DTH operator, has a market cap of $1.4 billion. The promoter holding in Videocon d2h is around 65 per cent while SEAC has 35 per cent stake. This pegs the valuation at around $929 million. But trading in Nasdaq at a premium of 15-16 per cent will keep the market cap at $1.2 billion. On 31 December 2014, Videocon d2h had signed an agreement to dilute 33.5-38.6 per cent stake to SEAC for an amount ranging from $303.7 million to $375 million. Videocon d2h will use the capital raised for buying set-top boxes (STBs), outdoor units, partially retiring debt and working capital requirements. The company will also go for an initial public offering (IPO) in India. Videocon Group chairman Venugopal Dhoot had earlier told TelevisionPost.com that the India IPO would happen after the US listing. “We are looking at first completing our deal transaction with SEAC and listing in the US. This is why we have asked SEBI to keep the processing of the offer documents in abeyance,” he had said. Videocon d2h will look to raise Rs 700 crore (Rs 7 billion) to Rs 900 crore (Rs 9 billion) by diluting 10 per cent of its shares to investors in the domestic IPO. Videocon d2h managing director Saurabh Dhoot said, “Our listing on the Nasdaq Stock Exchange is a major corporate milestone for the entire Indian media industry. This is the success of thousands of Videocon d2h employees working tirelessly and our customers who believed in our brand, product and services. We have just begun.” Videocon d2h has a gross subscriber base of over 13 million (as of 31 March). It has recently launched a 4K Ultra HD channel. It also offers 500 channels and services, including 29 Asli HD channels and 41 audio / video active music channels.
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