Odisha based Ortel Communications limited is looking for to raise Rs 217.2 to 240 Crore of funds through its initial public offering or IPO by issuing 120 lakhs equity shares of face value of Rs 10 each for cash.
The issue comprises a fresh issue to the public of up to 60 lakhs equity shares and an offer for sale of up to 60 lakhs equity shares by NSR-PE Mauritius LLC. The issue constitutes 39.25% of the fully diluted post issue paid up equity share capital of Ortel.
The price band and the minimum bid lot size will be decided by the company and the selling shareholder in consultation with the book running lead manager and will be advertised at least five working dates prior to the bid opening date.
For all bidders issue opens on March 3, 2015, for QIBs issue close on march 5, 2015 and for retail and non institutional bidders issue closes on march 5, 2015.
Ortel communications has presence in the states of Odisha, Andhra Pradesh, West Bengal and Chhattisgarh. As of June 30, 2014, 89.30% of Ortel’s customers are based in Odisha and company’s revenues are primarily derived from sale of cable television and broadband services in Odisha.
As stated in red hearing prospectus, in Fiscals 2014, 2013 and 2012, Ortel Communication’s loss after taxation was Rs 125.01 million, Rs 227.91 million and Rs 121.12 million, respectively.
Ortel received SEBI’s nod in November and the company had filed its red hearing prospectus in September 2014.
New Silk Route is authorised to transfer up to 8,182,598 Equity Shares, constituting its entire shareholding, as part of the Offer for Sale, pursuant to company’s board resolution dated September 9, 2014 and by its letter dated February 6, 2015, NSR has agreed to offer upto 6,000,000 Equity Shares for transfer in the Issue.
Fresh equity will be used for following activities after deducting the proceeds from the Offer for Sale and Issue related expenses;
- Expansion of network for providing video, data and telephony services;
- Capital expenditure on development of digital cable services;
- Capital expenditure on development of broadband services; and
- General corporate purposes.