MUMBAI: The decks have been cleared for Bharat Business Channel, the company that runs Videocon Group?s DTH business, to go ahead with its proposed Rs 7 billion initial public offering (IPO) with Sebi giving its nod.

The company, which operates the DTH business under Videocon d2h brand, had filed its draft red herring prospectus (DRHP) with Sebi in December last year for the IPO. It plans to list the shares on the Bombay Stock Exchange (BSE).

Sebi issued its final observations on the draft offer documents on 15 March.

Videocon d2h plans to spend Rs 4.88 billion out of the IPO proceeds on purchase of set-top-boxes (STBs) and associated equipment. The company will use another Rs 695.85 million to repay or prepay part of its debt from banks. The remaining amount will be for general corporate purposes.

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 as of 31 October 2012.

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.

MUMBAI: The Media & Entertainment industry needs to get its act together to grow at a rate of more than 12.5 per cent to be on par with other sunshine sectors, said The Walt Disney Company India MD Ronnie Screwvala.

Srewvala said the India M&E sector has success written all over it provided the industry comes out of its complacency. He also said that innovation and disruption will be the norm.

"The industry is projected to grow at 12 per cent. However this growth is not enough as other sunshine sectors are growing at a much faster pace," said Disney India?s head honcho.

Screwvala was convinced that India has the creative talent that would help it take the next big leap.
He also said that digitisation will change the dynamics of the broadcast industry. The early results of digitisation has been encouraging, he said.

The benefits of digitisation will only trickle down after two to three years.

"We have been waiting for digitisation for 20 years and it has finally happened," he said in a closing keynote address at Ficci Frames.

Joining debate with the industry on ratings system, Srewvala said the solution for a robust television ratings agency lies within the industry. The fact that almost 70 per cent of television households are outside the current ratings system is a matter of concern, he added.

On an optimistic note, he said that TAM is now covering more homes than it was covering earlier.

New media is a huge opportunity for the industry. However, the key is to find the right business model. India is one of the biggest mobile phone markets, which is also encouraging.

A Rs 1,000 crore blockbuster is not out of reach in future, he asserted.

Print, unlike other markets, is still growing in India at a healthy pace. The India DTH market is the biggest in the world. However, monetisation remains a concern.

On the contentious issue of censorship, an optimistic Screwvala said that India?s track record is still commendable. The need, though, is to take it to the level of matured democracies.

Regional market?s, he said, had shown phenomenal growth and are the future growth markets. Understanding consumer will also be key to growth.