GTPL Hathway Ltd, a subsidiary of Hathway Cable and Datacom Ltd, proposes to open on June 21, 2017 an initial public offering (IPO) of equity shares which is to close on June 23, 2017.The price band for the offer is fixed at Rs 167 per equity share for the lower band and Rs 170 per equity share in the upper band.
According to a statement by the company, bids can be made for a minimum of 88 equity shares and in multiples of 88 equity shares thereafter. From the initial plan of raising Rs 600 crore, the company has come down to Rs 480 crore.
GTPL Hathway Ltd has reportedly appointed Yes Securities, BNP Paribas, JM Financial Institutional Securities and MotilalOswal Investment Advisors Pvt Ltd to manage the public issue.
With a face value of Rs 10 each, the initial public offering will comprise of a fresh issue of equity shares aggregating up to Rs 2,400 million and an offer for sale comprising of 14,400,000 equity shares. The equity shares offered through the RHP are proposed to be listed on the BSE and the National Stock Exchange.
The bid closes June 23, 2017.
As of September 2016, the company’s digital cable TV services reached 169 towns across India and had about 5.41 million active digital cable subscribers. The company continues to be on an expansion spree.
The company had filed its draft papers with Securities and Exchange Board of India (Sebi) in December and received ‘observations’ from the regulator on May 12. Speaking to exchange4media regarding the rationale behind the initial public offering, Piyush Pankaj, Head - Investor Relations, GTPL Hathway Limited explained, “Looking at the corporate side, we need to make a heavy investment. For doing it in 3 years time, we need at least 150-200 crore and that’s where the IPO comes in.”
The company declined to comment on the valuation metrics but explained, “We already have the outstanding number of shares which is about 98.3 million.” The utilization of the proceeds was hinted towards repayment of loan and other general corporate purposes. “It will be utilized for our debt payment, which is around 229.75 crore, and general corporate purposes,” said Pankaj.