Asianet Satellite Communication Ltd IPO

Last Updated: 24 July 2023 4:45 PM by 5Paisa

IPO Synopsis
Asianet Satellite Communication filed its DRHP with SEBI, worth over Rs.765 crore. The issue consists of a fresh issue of Rs.300 crore and an offer for sale of equity shares worth around Rs.456 crore. The shares are being offloaded by Hathway Investments Pvt Ltd. 
The book running lead managers to the issue are Axis Capital and NOMURA Financial Advisory and Securities. And the promoters are Viren Rajan Raheja and Akshay Rajan Raheja.

Objectives of the IPO
1.    Rs.160 crore of the net proceeds is to be used to repay or prepay any existing debt availed by the company or its subsidiary- Asianet Digital Network Pvt Ltd
2.    Rs.75.04 crore is to be used as expenditure towards expanding their network infrastructure
 

Established in 1992, Asianet Satellite Communications is one of the leading internet service providers in the country, that offer broadband internet services and they are also a multi system operator that offers digital cable television services. The operations of the company is mainly concentrated in Kerela and other southern states of India. 
In FY21, the company was among the top three fixed broadband providers in Kerela, with a market share of approximately 19% and 0.28 million wired broadband subscribes in the same market. Their subsidiary- Asianet Digital Networks Pvt Ld was among the top 13 MSOs/HITS operators in India, as of June 2021. 
In terms of their direct fixed line broadband business, the company had home passes of around 0.67 million households in Kerela, as of 30 September 2021. In the same time period, they also had 0.27 million direct subscribers. The company reported a 10.54% CAGR between FY16 and FY21, in fixed broadband subscribers. Asianet currently provides 494 channels which include 64 HD channels. 
Asianet has around 1.14 million active digital cable television subscribers. Their digital cable services have reached 734 cities of Kerela, Telangana, Andhra Pradesh and Orissa. They also have a 100-year lease agreement with an Indian telecommunications provider who has 661 kms of fibre optics present underground in 10 out of 14 districts of Kerela. 
 

Financials