Hathway board approves allotment of 3.08 cr preference shares to promoter firm
MUMBAI: The board of Hathway Cable and Datacom has approved allotting 3.08 crore share to promoter firm Hathway Investments on preferential basis at a price of Rs 32.35 per equity share.
The company said that price of Rs 32.35 includes a premium of Rs 30.35 per equity share, which is higher than the issue price determined in accordance with Regulation 76 of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009
The 3.08 crore shares at Rs 32.35 aggregates to Rs 99.6 crore.
The board has also approved the private placement offer cum application letter along with the annexures in Form PAS-4 to be issued to Hathway Investments.
As on 30 June, the promoter and promoter group held 43.48% stake in the company while the public shareholding stood at 56.52%. Hathway Investments holds 9.85% stake in the company.
In July, Hathway’s board had approved raising up to Rs 100 crore through preferential basis to promoter entity Hathway Investments.
The preferential allotment was to be issued at price per equity share not less than the minimum price determined in accordance with the provisions of Chapter VII of the Securities and Exchange Board of India (Issue of Capital Disclosure Requirements) Regulations, 2009 or at a price of Rs. 32.25, whichever is higher.
Hathway has planned a Capex of Rs 310 crore in FY19. The company had deployed a similar Capex in FY18. The company is also getting aggressive on high definition (HD) set top box (STB) deployment. It plans to seed 2.5 lakh HD STBs in FY19.
In FY18, the company had spent Rs 225 crore on broadband business and Rs 85 crore on the cable TV business. The intention is to spend a similar amount on the two businesses in FY19.