Asianet Satellite Communications IPO

Asianet Satellite Communications limited is a renowned broadband internet service provider as well as a multi-system operator that provides digital cable television solutions. Asianet Satellite Communications IPO will hit the market in April 2021.

About Asianet Satellite

Kerala, like other southern regions, is a stronghold for Asianet Satellite Communications. They are among the key ISPs in Kerala, according to CRISIL Limited’s research titled “Assessment of broadband and television broadcasting business in India” dated December 2021.

In fiscal 2021, they were one of the three leading fixed broadband operators in Kerala, with a customer base of around 19 percent and 0.28 million wired internet customers in the state.

As of June 2021, Asianet Digital Networks Pvt. Ltd., which runs their cable television business, was one of India’s leading 13 MSOs/HITS providers.

In addition to Tamil Nadu, Karnataka, Telangana, Andhra Pradesh, Odisha, and Maharashtra, they have activities in Tamil Nadu, Karnataka, Telangana, Andhra Pradesh, Odisha, and Maharashtra.

Journey

They began their operations in 1992 as an MSO providing cable television services. They began offering internet services in 2000, leveraging their cable television business’s solid base, expertise, and cable network. Their broadband business has been gradually developing since then.

Working from home (including video conferencing and collaboration), studying from home, entertainment (including online gaming, video streaming, and social networking), and e-commerce have all increased the expansion of their broadband company from February 2020, owing to the COVID-19 pandemic.

Between fiscal 2015 and 2020, they have a 13 percent -15 percent market share in Kerala’s fixed broadband segment (Source: CRISIL Report).

Technology

A broadband provider’s service quality and breadth are determined by the size of its fibre network and the number of house passes it has. They have been spending ahead of the trend in this regard.

They invested heavily in its network infrastructure to improve the speed, stability, and capacity of their broadband services.

They switched to GPON technology in 2014, which is a fibre optic-based network that allows them to deliver greater internet speeds of up to 1 Gbps and expand their bandwidth capacity.

As per CRISIL, the use of fibre optics in India is evolving rapidly in towns and is still relatively low when compared to other technologies.

Asianet Satellite Communications IPO

Asianet Satellite Communications Limited, headquartered in Mumbai has submitted Draft Red Herring Prospectus(DRHP) to Securities and Exchange Board of India(SEBI) for initial public offering (IPO) of INR 765 crores on 20 December 2021.

The offer includes a fresh issue of INR 300 crore and there is offer for sale (OFS) of 465 crore value equity shares by the promoters mentioned in the DRHP. They are not looking for any Pre-IPO placement in this issue.

They are now waiting for approval from Securities and Exchange Board of India(SEBI) to float the initial public offering (IPO) in the market.

Financials Trends

Particulars	For the year/period ended ( in Cr.)
	30-Sep-21	31-Mar-21	31-Mar-20	31-Mar-19
Total Assets	695.39	676.87	671.91	646.65
Total Revenue	294.42	515.46	456.51	428.31
Profit After Tax	16.67	31.03	0.29	9.26

Basic and Diluted Earnings Per Share

Financial Period	Basic EPS (in INR)	Diluted EPS (in INR)	Weight
Financial Year 2021	3.08	3.08	3
Financial Year 2020	0.03	0.03	2
Financial Year 2019	0.92	0.92	1
Weighted Average	1.70	1.70
30 Sep. 2021	1.66	1.66

Objects of the Issue

• Prepayment / repayment of all or a portion of the outstanding borrowings of the company to be availed on consolidated basis.
• To meet common corporate objectives.

Basis of the offer

They feel the following are among the qualitative aspects that go into determining the Offer Price:

• One of Kerala’s top ISPs and MSOs, with a sizable market share in fixed line broadband and digital cable television.
• The infrastructure and network are technically sophisticated.
• Well-positioned to take advantage of India’s growing fixed broadband market, which is a lucrative market with huge unmet demand for fixed broadband services.
• In the markets where they operate, they have a strong brand identification.
• Financial measures that are excellent.
• Good corporate governance, and a seasoned board and leadership personnel.

Peer Comparison

S. No.	Face Value	Company Name	PE
1	10	Den Networks Limited	10.60
2	10	GTPL Hathway Limited	15.74
3	2	Hathway Cable & Datacom Limited	15.28
4	1	Siti Networks Limited	N/A
5	10	Nxtdigital Limited	N/A
6	5	Bharti Airtel Limited	N/A
7	10	Vodafone Idea Limited	N/A

Note

1. On December 16, 2021, the closing BSE price of these equity shares was retrieved from the BSE portal.
2. All of the financial data for the listed industry peers given above is on a consolidated basis (unless otherwise stated) and comes from the firm’s annual results for the fiscal year ending March 31, 2021.

Asianet Satellite IPO Details

IPO Opening Date	April 2021
IPO Closing Date	April 2021
Issue Type	Book Building
Face Value	10 per share
IPO Price	0 to 0 per equity share
Market Lot	–
Min Amount	–
Listing At	BSE, NSE
Issue Size	765 Crore
Fresh Issue	300 Crore
Offer for Sale	465 Crore

Asianet IPO Date

Asianet Satellite IPO opening date is April 2021, and the closing date is April 2021. The Asianet Satellite Communications IPO issue may list in April 2021.

IPO Opening Date	April 2021
IPO Closing Date	April 2021
Basis of Allotment Date	April 2021
Initiation of Refunds	April 2021
Credit of Shares to Demat Account	April 2021
IPO Listing Date	April 2021

Basis of Allotment

Type	% of Offer	Basis of Allotment
Qualified Institutional Buyer	75	Roughly  equivalent
Non Institutional Investor	15	Roughly  equivalent
Retail	10	Minimum 1 lot based on availability

Asianet IPO Allotment Status

Allotment of equity stocks subject to the Fresh Issue and transfer of the Promoter Selling Shareholders’ OFS Stocks to the winning Bidders subject to the Offer for Sale. Nevertheless, the status of the allotment has yet to be revealed.

Here, you can find the Allotment Status of Asianet Satellite IPO.

Asianet Satellite Communications IPO GMP

Asianet Satellite IPO Grey Market Premium is 0. You can check out GMP of Other IPOs on below Links:

Date	GMP (in Rs)	Subject to Sauda	Kostak (in Rs)
April 2021
April 2021
April 2021
April 2021
April 2021
April 2021
April 2021
April 2021
April 2021
April 2021
April 2021
April 2021

Check Out the GMP of all Other IPOs

IPO Grey Market Premium

Asianet Satellite IPO Review

Asianet Satellite IPO review will depend on the price band which will be announced after SEBI approval. Whenever it will be announced we will update you regarding review of Asianet IPO is good or bad.

Asianet Satellite Communications IPO Risk

• Their firm is embroiled in a significant legal battle over adjusted gross revenue.
• For their activities, they rely on cables that are drawn by electrical poles owned by the Kerala State Electricity Board Limited and the Thrissur Corporation Electricity Department.
• They operate in a competitive market where pricing and other market pressures may exist, and their competitors may have greater financial and other capabilities than they do.
• Kerala accounts for a large portion of their subscriber base.
• They might not be able to keep up with technological advancements and changing industry requirements.
• Their failure to repay their loans or adhere with certain loan covenants could have a significant impact on their financial condition.

Other Threats

• Their sector is heavily regulated, and they must obtain specific approvals, licences, registrations, and permissions in order to operate.
• They demand large resources to finance their business expansion, which may necessitate significant debt, as well as operations and financing expenditures.
• If they are unable to scale their business or effectively manage their own, the quality of their services and operational outcomes may suffer.
• They are involved in a number of court proceedings. Any negative outcome in such procedures could have a negative impact on their business.
• To preserve and develop their consumer base, they rely on the power of their brands.

Network

Their cutting-edge network allows them to provide their consumers with high-speed, dependable broadband services, enhancing their brand.

Furthermore, they feel that our premium customer support solutions, and also their best-in-class vendor ecosystem, contribute to their strong branding, client loyalty, and churn management.

For example, they deliver quality customer service to their clients via conveniently accessible multimodal ways, both physical and online, at their service centres, through their 24/7 call centres, over Whatsapp, and on their website.

Their call centre employees provide service to their clients in their native language. They had 87 service facilities and four call centres as of September 30, 2021, covering many of Kerala’s main towns and villages.

Asianet Satellite Communications IPO Brokerage views

• Yes Securities : Not Updated
• Choice Brokering: Not Updated
• Axis Securities: Not Updated
• IIFL Securities: Not Updated
• Trade swift: Not Updated
• Anand Rathi : Not Updated
• ICICI Securities: Not Updated

Asianet Satellite Communications IPO Subscription Status

Date	Day	QIB	NII	Retail	Employees	Total Subscription
April 2021	1
April 2021	2
April 2021	3

Asianet Brand

We’ve built a strong brand presence with a high level of popularity. In the regions where they operate, they believe their brand names “Asianet Broadband,” “Asianet Digital,” and “Asianet Digital HD” are well-known.

They began offering digital cable television services under the “Asianet Digital” name, and when we began offering digital cable television services with HD channels, they established the “Asianet Digital HD” brand.

They introduced the “Asianet Broadband” brand and offer broadband solutions under it as they expanded their services to cover broadband services.

Their strong branding allows them to charge a premium for their services, and their ubiquity is aided by their powerful footprint, broad client base, and distribution network.

Management

Their board of directors and executive team come from a variety of backgrounds, such as cable television distribution, media operations, telecommunications, internet services, finance, and accounting.

Their board of directors and management team think that their industry experience and business acumen have aided and will continue to aide them in driving their growth and running effectiveness.

They also have a solid corporate governance mechanism in place to oversee, direct, and assist their activities. They are devoted to good corporate governance and have set up numerous committees to monitor responsibilities like audit, nominations, and remuneration.

Principal Shareholder

• Viren Rajan Raheja
• Akshay Rajan Raheja

Promoters’s Holding

Pre Issue Share Holding	35.33%
Post Issue Share Holding

Asianet Satellite Prospectus