MUMBAI: GTPL Hathway, in which Hathway Cable & Datacom owns 50% stake, has got the approval of capital markets regulator SEBI for an initial public offering (IPO).
The company, which had filed in January its draft prospectus with SEBI, is looking to hit the IPO market in June. The plan, according to market sources, is to have a valuation of around Rs 3,000 crore.
Ortel Communications was the last multi-system operator (MSO) to list on the bourses. GTPL Hathway will be tapping the market after two years.
GTPL Hathway is offering a fresh issue of equity shares aggregating up to Rs 300 crore. It is also offering up to 18 million equity shares as offer for sale.
Out of the net proceeds of the Rs 300-crore fresh issue, GTPL Hathway intends to utilise Rs 229.67 crore for repayment of debt.
The promoters hold 98.95% stake in the company of which 50% is held by Hathway Cable & Datacom, 29.11% by Gujarat DigiCom, 14.62% by Aniruddhasinh Jadeja, 5.21% by Kanaksinh Rana and 1.05% by Amit Shah.
GTPL Hathway is a dominant MSO in Gujarat having 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.
GTPL Hathway is the second-largest MSO in Kolkata and Howrah in West Bengal with a market share of 24% of cable television subscribers in that market in 2015, accounting for approximately 0.7 million of 3.0 million cable TV households in Kolkata and Howrah.
The MSO accounted for 14% share of the total cable carriage and placement fee market in India in FY 2016.
As of 30 September 2016, GTPL Hathway’s digital cable television services reached 169 towns across India, including towns in Gujarat, West Bengal, Maharashtra, Bihar, Assam, Jharkhand, Madhya Pradesh, Telangana, Rajasthan and Andhra Pradesh.
It had seeded approximately 6.19 million set-top boxes (STBs) and had approximately 5.41 million active digital cable subscribers. As of 31 August, it had approximately 2.02 million analogue cable subscribers, for which it had received requisitions for digital STBs from local cable operators (LCOs). The company had 217,823 broadband subscribers until 30 September with approximately 1 million homes passed.
In FY16, GTPL Hathway posted a net profit of Rs 69 crore on a revenue of Rs 844.55 crore and EBITDA of Rs 272 crore.