Cable TV and broadband internet services provider Hathway Cable & Datacom Ltd has intimated a potential initial public offering (IPO) listing on Monday where the company is looking to raise Rs 300 crore (approximately US$45 million).
The IPO filing of Draft Red Herring Prospectus was completed by its material subsidiary, GTPL Hathway Pvt. Ltd with the Securities and Exchange Board of India as well as with both the Stock Exchanges, i.e. BSE Limited and National Stock Exchange of India Limited.
The GTPL Hathway IPO was approved by the Hathaway’s board since August 2016.
As per details of the draft prospectus, the company notes that its IPO will seek to raise funds for GTPL through a fresh issue of equity shares while giving an option to existing GTPL shareholders to sell their holdings.
Offering cable TV and broadband services, GTPL Hathway is one of the largest cable television operators in India, found in several cities which includes Pune, Ahmedabad, and Kolkata.
Despite being one of the many subsidiaries and partnerships owned by the listed Hathway Cable and Datacom Limited, GTPL Hathway is arguably one of its most profitable associations as well as one of the largest contributors to Hathway’s consolidated numbers across major financial and operational parameters.
On the other hand, Hathway’s own cable TV operations span across almost 140 cities, alongside their broadband service which is provided in 21 cities across the country.
At present, Hathway has approximately 1.4 million broadband customers base which the company claims to constitutes approximately 52% of the total cable broadband market in India.
Besides Hathway, who owns a 50% stake of GTPL Hathway, other major shareholders include co-founders – Aniruddhasinhji Jadeja and Kanaksinh Rana – who owns a direct 14.6% alongside another indirect 29.1% through shareholding entity Gujarat Digi Com Private Limited and 5.2 per cent shares of GTPL respectively.
Shares of Hathaway Cable & Datacom Ltd was last trading in BSE at Rs, 34.55, which shows a Rs 0.25 increase as compared to the previous close of Rs34.30. The total number of shares traded during the day was 12593 in over 88 trades.
The stock hit an interday high of Rs 34.74 and intraday low of 34.25. The net turnover during the day was Rs.434100
The demerger will be subjected to requisite approvals from the shareholders, creditors, high courts, DoT, stock exchanges, Sebi and other applicable regulatory authorities.
The company has hired JM Financial Institutional Securities Ltd, BNP Paribas, Motilal Oswal Investment Advisors Pvt. Ltd and Yes Securities (India) Ltd to manage the initial share sale.
By Vivian Foo, Unicorn Media