We’ve been expecting this: Indian TV and E-commerce company HomeShop18 has filed for a $75 million IPO on NASDAQ, via its venture NW18 HSN holding. The company proposes to trade on the New York Stock Exchange (NYSE) under the symbol HS.
Some notes from the offer document. More to follow.
– 8.9 million consumers have placed orders with Homeshop19 since launch
– As of September 30, 2013, the TV channel reached more than 66.5 million households across India, while the e-commerce business had 8.3 million unique visitors during that month (Google Analytics)
– a technology-enabled logistics network that allows our Sourcing Partners to deliver products to our customers’ doorstep in over 3,000 towns and cities across India.
Usage of Funds
HomeShop18 notes it will not receive any proceeds from the sale of ordinary shares by Network18 Holdings Limited and other selling shareholders. Instead, it will receive the rupee equivalent of $42.3 million of the proceeds which Network18 Holdings Limited expects to receive from its sale of ordinary shares in this offering. Following this, HomeShop18 will be using these funds to purchase the equity interest in its Indian subsidiary currently held by Network18 within 45 days of the completion of this offering.
HomeShop18 mentions that it may also use a portion of these proceeds for acquisitions or strategic investments in technologies, solutions or businesses which complements the company’s business, although it currently doesn’t have any such commitments.
Besides this, it plans to use a portion of these proceeds to repay all its outstanding borrowings under its credit facilities from The Ratnakar Bank Limited which was $4.3 million as of September 30, 2013. The company has a short-term secured borrowings of Rs 8.8 crore ($1.4 million) which has been used to meet its working capital requirements and pay operating expenses. It also has outstanding long-term borrowings of Rs 18.1 crore as of September 2013.
(c) Medianama 2013. This article is brought to you in association with Medianama, the premier source of information and analysis on Digital and Telecom businesses in India.