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GTPL Hathway IPO oversubscribed 1.5 times on final day

MUMBAI: The initial public offering (IPO) of cable TV and broadband services provider GTPL Hathway was fully subscribed on the final day of the issue on Friday.

The issue was oversubscribed 1.52 times, data from stock exchanges showed. It received bids for 30.86 million shares against the total issue size of 20.21 million shares, excluding the anchor investors’ portion.

The portion of shares reserved for institutional investors was subscribed 1.48 times, non-institutional investors such as corporate houses and high net-worth individuals 2.85 times, and retail investors just about fully subscribed.

GTPL Hathway, in which Hathway Cable & Datacom has a 50% stake, is looking to raise Rs 240 crore by issuing fresh shares. The IPO also includes an offer for sale of up to 14.4 million shares worth Rs 240 crore by promoters and existing shareholders in the price band of Rs 167–170 a share.

On Tuesday, a day ahead of the IPO, GTPL Hathway raised Rs 145.44 crore from anchor investors. The anchor investors include Acacia Banyan Partners, Government Pension Fund Global, BNP Paribas, HTCL-HDFC Prudence Fund, DB International Asia and Vittoria Fund. GTPL Hathway is looking at a valuation of Rs 1,900 crore through the IPO.

The anchor investors picked up shares at Rs 170 per share. This was at the upper end of the price band. Proceeds from the IPO will be utilised towards repayment of debt and other general corporate purposes.

JM Financial Institutional Securities, BNP Paribas, Motilal Oswal Investment Advisors and Yes Securities are appointed to manage the public issue.

In FY17, GTPL Hathway posted EBITDA of Rs 300 crore compared to Rs 272 crore a year ago. Revenue was at Rs 986 crore, up from Rs 845 crore in FY16.

Out of GTPL Hathway’s total cable TV universe of 8 million, 7.5 million are digital subscribers.

GTPL was set up in 2006 by Aniruddhasinhji Jadeja and Kanaksinh Rana. The Ahmedabad-based company diluted 50% stake to Rajan Raheja Group-backed Hathway Cable & Datacom in 2008. The MSO has since expanded in size and spread to many parts of the country.

The shares will be listed on the BSE and the NSE.

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