GTPL Hathway to launch IPO on 21 June, sets Rs167-170 price band

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Mumbai: Cable TV and broadband services provider Hathway Cable & Datacom Ltd on Wednesday said its unit GTPL Hathway Pvt. Ltd will launch its initial public offering (IPO) on 21 June.

GTPL Hathway offers cable TV and broadband services in several cities including Pune, Ahmedabad and Kolkata.

The company has set a price band of Rs167-170 per share for the initial share sale. The offer closes on 23 June.

The IPO will see the company raise Rs240 crore through a fresh issue of shares and a secondary share sale comprising of 14.4 million shares by the promoter group. At the upper end of the price band, the secondary share sale will fetch the promoter group Rs244.8 crore.

GTPL Hathway will use the proceeds from the IPO to reduce debt.

It is a regional multiple system operator (MSO) offering cable television and broadband services. According to the company’s red herring prospectus, it has a market share of 67% of cable television subscribers in 2015, accounting for approximately 3.7 million of 5.6 million cable television households in Gujarat, while it is the number two MSO in Kolkata and Howrah in West Bengal with a market share of 24% of cable television subscribers in this market in 2015, accounting for approximately 700,000 of 3 million cable television households in the twin cities.

As of 31 January, the company’s digital cable television services reached 189 towns across India, including towns in Gujarat, West Bengal, Maharashtra, Bihar, Assam, Jharkhand, Madhya Pradesh, Telangana, Rajasthan and Andhra Pradesh.

Hathway’s own cable TV operations span across almost 140 cities, while the broadband service is provided in 21 cities across the country, according to the company’s website.

For the nine months ended 31 December 2016, GTPL Hathway reported a revenue of Rs663.4 crore and a profit of Rs16.3 crore.

Investment banks JM Financial Institutional Securities Ltd, BNP Paribas, Motilal Oswal Investment Advisors Ltd and Yes Securities (India) Ltd are managing the share sale.

With its IPO, GTPL Hathway will join several other firms that are launching their IPOs this month.

Last week, Mint reported that several firms, including depository services firm CDSL, private equity firm ChrysCapital-backed pharma company Eris Lifesciences, telecom equipment maker Tejas Networks Ltd and small finance bank Au Small Finance Bank Ltd are launching share sales. Collectively, these companies are looking to raise over Rs5,000 crore through their IPOs.

So far this year, eight firms have raised Rs6,335.83 crore through IPOs, while last year, 26 companies raised Rs26,493.84 crore through this route.