Hathway Cables IPO opens; price band Rs 240-265

MUMBAI: Hathway Cables and Datacom, a cable television services provider, has entered the primary market with initial public offering of 2.77 crore equity shares of Rs 10 each in the price band of Rs 240-265 per share. The issue closes February 11, 2010. (Watch)

The issue will constitute approximately 19.43 per cent of the post-issue share capital of the company.

Hathway Cables is also the cable broadband services providers. It offers analog and digital cable television services across 125 cities and towns and high-speed cable broadband services across 18 cities.

The company plans to use the proceeds to fund customer acquisitions, investment in the development of digital capital expenditure, services and set top boxes; investment in the development of broadband infrastructure, capital expenditure and services; repayment of loans; and fund expenditure for general corporate purposes.

The company has issued 51.91 lakh shares to anchor investors at floor price of the IPO at Rs 240 per share. These investors have so far subscribed to shares worth Rs 119.76 crore. Major anchors investors include Franklin India Prima Plus, DSP BlackRock India T.I.G.E.R Fund and Reliance Equity Opportunities Fund.

For six months ended September 2009, the company has reported net loss of Rs 35.63 crore and total income of Rs 364.92 crore. It has debt of Rs 443.03 crore on its books.

The book running lead managers to the issue are Morgan Stanley India Company Private Limited, UBS Securities India Private Limited and Kotak Mahindra Capital Company Limited. Link Intime India Private Limited is the registrar.