Cable distribution firm Ortel Communications Ltd (OCL) has received market regulator Sebi’s approval to raise funds through an initial public offer (IPO).
The company had filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) in September this year for the proposed public offer.
Sebi issued its final observations on the draft offer documents on November 10. Sebi’s observations are necessary for the companies to launch any public offer.
Prior to that, Sebi had sought clarification from the company’s lead manager, Kotak Mahindra Capital Company Limited, regarding the company’s proposed IPO.
Ortel, a regional cable television and broadband service provider, plans to enter capital markets with a public issue of up to 14,182,598 equity shares of face value of Rs 10 each.
The offering comprises a fresh issue to the public of 60 lakh shares and an offer for sale of up to 81.82 lakh shares by NSR – PE Mauritius LLC.
This is the company’s second effort to hit the capital market. The company’s earlier plan in 2013 to garner Rs 100 crore through the stock market did not take off.
The proceeds of the issue would be utilised for expansion of the company’s network for providing video, data and telephony services and general corporate purpose.