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GTPL Hathway raises Rs 145 cr from anchor investors at upper price band

MUMBAI: GTPL Hathway, which offers cable TV and broadband services, raised over Rs 145 crore from a slew of anchor investors ahead of its initial public offering (IPO) that opens on 21 June.

The anchor investors, including private equity firm Acacia Banyan Partners and Norway’s Government Pension Fund Global, picked up shares at Rs 170 per share. This was at the upper end of the price band. GTPL Hathway has fixed the lower end of the price band at Rs 167.

GTPL Hathway, in which Hathway has a 50% stake, allotted 85.55 lakh shares to anchor investors to collect Rs 145.44 crore on Tuesday.

The anchor investors include Acacia Banyan Partners (30.94%), Government Pension Fund Global (18.56%), BNP Paribas Equity Fund (5.03%), BNP Paribas Long Term Equity Fund (2.92%), BNP Paribas MidCap Fund (5.85%), BNP Paribas Dividend Yield Fund (2.34%), BNP Paribas Balanced Fund (1.05%), HTCL-HDFC Prudence Fund (15.13%), DB International Asia (10.62%) and Vittoria Fund (7.56%).

Acacia bought 2.65 million shares for Rs 45 crore while the Norwegian pension fund picked up 1.59 million shares for Rs 27 crore. BNP Paribas acquired 1.47 million shares for Rs 25 crore while HDFC paid Rs 22 crore for 1.29 million shares. DB International took 9.09 lakh shares for Rs 15.45 crore and Vittoria Fund 6.47 lakh shares for Rs 11 crore.

Incidentally, Acacia, which is part of New York-based investment firm Ruane, Cunniff & Goldfarb, holds 9.69% stake in Odisha-based multi-system operator (MSO) Ortel Communications. It acquired the stake after Ortel’s IPO.

Acacia also has 6.54% stake in MSO DEN Networks and 5.94% in FM radio broadcaster Entertainment Network (India) Ltd. The shareholding is based on data provided by the companies until 31 March 2017.

GTPL Hathway is looking at a valuation of Rs 1,900 crore through the IPO. The public offering comprises a fresh issue of shares worth Rs 240 crore, besides a sale of 14.4 million shares by promoters and shareholders amounting to Rs 240 crore.

As reported earlier by TelevisionPost.com, GTPL Hathway has cut the size of its IPO by 20% to drum up demand among investors in a sector that has seen some beating. The promoters of GTPL Hathway strategically decided on 25% dilution rather than 30%. The new move will slash the overall issue size to Rs 480 crore, down from the initial plan of raising Rs 600 crore.

Ortel Communications was the last MSO to list on the bourses a little over two years back. The IPO managed to sail through after private equity firm New Silk Route slashed the number of shares it sought to sell in the IPO. The stock has seen a sharp fall and Ortel’s current market cap is just Rs 208.61 crore.

Hathway Cable & Datacom’s market cap is Rs 3,396.72 crore. While the market cap of Siti Networks is at Rs 2,598.72 crore, DEN Networks is at Rs 1,619.15 crore.

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. Since then, the MSO has expanded in size and spread to many parts of the country.

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

The IPO opens on Wednesday, 21 June and closes on 23 June, Friday.

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