The direct to home TV business unit of Videocon Group, Bharat Business Channel is planning to launch an initial public offering (IPO) aiming to raise upto Rs 700 crore.

The company has received permission form the capital market regulator, the Securities Exchange Board of India (SEBI) for the proposed IPO. The company had filed the draft red herring prospectus (DRHP) with SEBI in December for the IPO. The regulator gave tis final observations on the draft on 15 March, 2013.

Under the new regulations, the observations from SEBI are mandatory for the companies to launch any public offer in the country. Lead manager Enam Securities had submitted the draft offer documents on 14 December, 2012. Overall, the IPO is expected to raise Rs 700 crore and about Rs 50 crore is expected to be gathered in pre-IPO placement of shares to institutional investors.

The issue will include about a quarter of the company’s stake and will value Bharat Business Channel at 2,800 crore. It is planning to use the raised funds for acquisition of set-top boxes, outdoor units and accessories thereof, repayment/prepayment of certain indebtedness and general corporate purposes, according to the company.