Chennai, Jan 13 (IANS): Indian markets regulator SEBI has sought a clarification from Axis Capital Ltd., the merchant bankers, for Videocon d2h Ltd.'s Rs.700 crore initial public offer (IPO), the regulator said.

In its status report on the processing of draft offer documents, Securities and Exchange Board of India (SEBI) said it sought clarifications from Axis Capital, the lead managers to the Rs.700 crore IPO by the direct-to-home television player Videocon d2h.

The company in its draft prospectus has said the object of the issue is to raise Rs.700 crore towards purchase of set-top-boxes, outdoor units, accessories (Rs.350.83 crore), payment of certain debt (Rs.175 crore) and the balance Rs.174.17 crore for general corporate purposes.

The company had filed the draft prospectus Sep 30, 2014.

Meanwhile, the SEBI said Zee Media Corporation's Rs.200 crore right issue for purchase of equipments, funding of subsidiaries and repayment of some loan is under process.