Cable TV
Ortel Communications files DRHP with SEBI for IPO worth Rs 360 crore
MUMBAI: Odisha based last mile owner (LMO) Ortel Commnications has filed its draft red herring prospectus (DRHP) for its proposed initial public offering (IPO) with the securities and exchange board of India (SEBI). Ortel Communications CEO BP Rath confirmed the news to indiantelevision.com.
The LMO is looking at a public issue of 14,182,598 equity shares of face value of Rs 10 each. The IPO may raise as much as Rs 360 crore.
It consists of 60 lakh shares from the company and an offer for sale of up to 81.82 lakh shares by New Silk Route (NSR) that currently owns a 35 per cent share in the LMO. This would mean Ortel ending up with nearly Rs 150 crore and NSR exiting with Rs 200 crore.
The deal is being handled by Kotak Mahindra Capital. It also has the option for a pre IPO sale of up to 25 lakh equity shares to generate up to Rs 65 crore.
NSR has been keen to exit the business for quite some time. With this fresh infusion that Ortel is expecting, the LMO plans to grow its cable and broadband business in Odisha as well as neighbouring states such as Andhra Pradesh, Chhattisgarh, West Bengal etc.
MUMBAI: When margins wobble, liquidity talks and in Q3 FY25-26, cash did most of the talking. Den Networks Limited closed the December quarter with consolidated revenue of Rs.251 crore, marginally higher than the previous quarter but down 4 per cent year-on-year, even as profitability stayed resilient on the back of strong cash reserves and disciplined cost control.
Subscription income softened to Rs.98 crore, slipping 3 per cent sequentially and 14 per cent from last year, while placement and marketing income offered some cheer, rising 15 per cent quarter-on-quarter to Rs.148 crore. Total costs climbed faster than revenue, up 7 per cent QoQ to Rs.238 crore, driven largely by higher content costs and operating expenses. As a result, EBITDA dropped sharply to Rs.13 crore from Rs.19 crore in Q2 and Rs.28 crore a year ago, pulling margins down to 5 per cent.
Yet, the bottom line refused to blink. Profit after tax stood at Rs.40 crore, up 15 per cent sequentially and only marginally lower than last year’s Rs.42 crore. A healthy Rs.57 crore in other income helped cushion operating pressure, keeping profit before tax at Rs.48 crore, broadly stable quarter-on-quarter despite the tougher cost environment.
The real headline-grabber, however, sits on the balance sheet. The company remains debt-free, with cash and cash equivalents swelling to Rs.3,279 crore as of December 31, 2025. Net worth rose to Rs.3,748 crore, while online collections accounted for 97 per cent of total receipts, underscoring strong cash discipline across operations, including subsidiaries.
In short, while Q3 showed signs of operating strain, the financial backbone remains solid. With zero gross debt, steady profits and a formidable cash war chest, the company enters the next quarter with flexibility firmly on its side proving that in uncertain markets, balance sheet strength can be the best growth strategy.
