MUMBAI: IndusInd Media & Communications Ltd (IMCL), the media subsidiary company of Hinduja Ventures Ltd, plans to raise Rs 5 billion through an initial public offering (IPO) this fiscal.

The funds will be used primarily for digitisation and acquisition of cable TV networks.

“We are looking at an IPO this fiscal. We plan to raise Rs 5 billion,” says IndusInd Media & Communications CEO & MD Ravi Mansukhani.

IMCL, which operates its cable TV distribution business under the Incablenet brand, will focus on expanding its primary points that will provide access directly to the consumer homes.
 
The company plans to invest Rs 1 billion in the fiscal, mainly for acquisitions. “A lot, though, will depend on whether the government comes out with a digitisation policy. If that happens, then we will invest more. A bulk of it will be taken away by digital set-top boxes,” says Mansukhani.

On the acquisition front, IMCL will either buy out the operators wholly or enter into joint venture arrangements. “We will continue with entire buyouts of small-sized networks. For bigger networks, we will have JVs,” says Mansukhani.

IMCL has just bought out eight smaller networks in Mumbai, aiding it to expand its direct points in the city. In the last fiscal, the company made several acquisitions including Sangli Media Services and RMD Baroda Networks. 
 
“Our investments in new geographies have contributed to the growth and continued profitability of the company. We will be aggressive in acquisitions,” says Mansukhani.

IMCL has cable TV, broadband and infrastructure businesses. The content business has been hived off and IN Entertainment houses cable movie channel CVO, cable shopping network Shop24Seven, film production and distribution and movie licensing through Cablemaster.

IMCL has a reach of over eight million subscribers across 27 major cities.

Hinduja Ventures holds 66 per cent in IMCL.