MUMBAI, Oct 19: Regional cable television service provider Ortel Communications Ltd is proposing a public issue of up to 14,182,598 equity shares in November.
The issue constitutes 46.38 per cent of fully diluted post-issue paid up equity share capital of the company.
“The company is raising around Rs 300 crore through IPO in November. The issue comprises a fresh issue of 60,00,000 equity shares and an offer for sale of upto 8,182,598 equity shares by NSR – PE Mauritius LLC. Post issue, the promoters will hold around 51 per cent equity stake,” Ortel President and CEO Bibhu Prasad Rath told reporters here.
Ortel Communications is one of the first private sector companies in India to be granted an ISP license by the government. Through primary point cable business model, it offers digital and analog cable television, broadband and VAS services in Odisha, Chhattisgarh, West Bengal and Andhra Pradesh.
“We currently hold a dominant position in Odisha, with a fast-emerging presence in our three other markets, covering an addressable market of approximately 5 million homes. The public issue will fund expansion of our network for providing video, data and telephony services; provide capital expenditure on development of our digital cable services and development of our broadband services,” Rath said.
Fixed broadband penetration in India is expected to reach 6 per cent by Indian homes by 2023, while mobile per capita penetration is expected to reach 3 per cent by 2023.
According to Rath, Ortel’s strategy includes deeper penetration in our existing geographies and entry into new geographies and increased penetration of digital television services. It intends to increase broadband subscriber base and expand through buyout of network equipment, infrastructure and subscribers of other MSOs and LCOs; as well as leasing of fibre infrastructure to corporates.
“We have expanded our presence from 24 towns and certain semi-urban and rural areas as of March 31, 2010, to 48 towns and certain adjacent semi-urban and rural areas as of June 30, 2014. We intend to expand further to new locations in Odisha, Andhra Pradesh, Chhattisgarh and West Bengal and enter new markets such as Madhya Pradesh,” Rath said.
Most of the MSOs have yet to rollout packages and complete KYC exercises across phase-II markets.
“We have built a two-way communication network for ‘Triple Play’ services (video, data and voice capabilities) with control over the ‘last mile’. We had adopted the B2C model since our inception and hence, we believe we have the required capabilities and infrastructure to migrate to complete digitisation,” Rath said. (PTI)
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