GTPL Hathway plans to raise Rs 150 crore via pre-IPO placement

MUMBAI: Multi-system operator (MSO) GTPL Hathway is planning a Rs 150-crore pre-IPO (initial public offering) private placement of up to 9 million shares.

GTPL Hathway, in which Hathway Cable & Datacom owns 50% stake, will complete the issuance and allotment of equity shares pursuant to the pre-IPO placement, if any, prior to the filing of the red herring prospectus with the registrar of companies (RoC).

If the pre-IPO placement is completed, the company will reduce the offer size to the extent of such pre-IPO placement. This is subject to the offer size constituting at least 25% of the post-offer paid-up equity share capital of the company or the post-offer equity share capital calculated at the offer price being greater than Rs 1,600 crore but less than or equal to Rs 4,000 crore (at least Rs 400 crore calculated at the offer price), as the case may be.

The company, which filed on Friday its papers for an IPO with market regulator SEBI, 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.

Hathway Cable & Datacom is offering nine million shares for sale while Aniruddhasinh Jadeja and Gujarat DigiCom, in which Jadeja owns a majority stake, will sell 1.42 million and 6.85 million equity shares respectively. Kanaksinh Rana and Amit Shah, the other shareholders in the company, will offload up to 550,000 and up to 180,000 equity shares respectively.

GTPL Hathway will not receive any proceeds from the offer for sale by the shareholders, and the proceeds received from it will not form part of the net proceeds. The selling shareholders will be entitled to their respective proportion of proceeds from the offer for sale after deducting their proportionate offer-related expenses.

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.

It 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.

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