YOU Broadband & Cable plans Rs 360 crore IPO
YOU Broadband and Cable India, cable broadband service provider, proposes to enter capital market with a public issue to raise around Rs 360 crore. This is the third company from the broadband space approaching IPO route since October 2009; first two were Den Networks and Hathway Broadband.
YOU Telecom (Mauritius) holds 82.44% stake in the company, 8.27% is with YOU Telecom Employee & Welfare Trust and 4.41% is with Bennett Coleman & Company.
The company commenced operations in 2001 and currently provides high-speed broadband cable internet services to residential and enterprise segment customers across 11 cities in India. As of September 30, 2009, it owned and operated over 990 kilometers of fiber optic cable and over 4,100 kilometers of trunk coaxial cable network, supported by 11 NOCs. As of September 30, 2009, its residential broadband internet service subscriber base aggregated approximately 200,779 customers.
It intends to use issue proceeds for capital expenditure in connection with broadband business (of Rs 1,57.39 crore); acquisition of additional equity shares in Digital Outsourcing Private Limited (Rs 12.83 crore); investment in Digital Outsourcing Private Limited by way of providing loans and/or through purchase/subscription of an equity interest therein for purchase of set-top boxes, head-end equipments, software, other related equipment, and acquisition of customers in connection with cable network services (Rs 85 crore); expenses towards working capital (Rs 17.1 crore ); repayment of outstanding loan (Rs 4.84 crore) and for general corporate purposes.
The company has been loss making since last five financial years. For the period of six months ended on September 2009, it has reported loss of Rs 9.096 crore on total income of Rs 37.65 crore.
The book running lead manager to the issue is Edelweiss Capital Limited and Karvy Computershare Private Limited is the registrar.