Hathway Cable’s board of directors has approved an IPO for its subsidiary GTPL (Gujarat Telelink Pvt Ltd), the company informed the BSE. The IPO for GTPL will take place via fresh issue of shares with an option for existing shareholders of GTPL to sell shares held by them. The company did not provide a timeline for the IPO.
The approval to sell the upto 9 million shares held by existing shareholders is subject to approval of the shareholders, regulatory authorities and third parties and on the terms and condition imposed by the board. Additionally, the shares can only be sold “at a price which shall not be less than the fair value of shares of GTPL or as the Board may deem fit in accordance with the prevailing market conditions and in the best interest of the Company.”
Demerger of broadband business: In October last year, Hathway said it planned to demerge its broadband business into a fully owned subsidiary of Hathway Broadband. At the same time, the company also got an approval from the board to increase the limit for borrowing loans in excess of paid-up capital and free reserves from Rs 1,600 crore to Rs 1,800 crore.
Hathway has been looking to increase its share in the broadband market for a while now, with initiatives like Broadband Movies with Eros Now. The company has also been offering a 50 Mbps default minimum speed in the cities of Bangalore, Hyderabad, Mumbai and Pune, although with abysmally low data caps.
IPO’s this year:
– In July, Japan-based LINE Corp decided to price its IPO at 3,300 yen ($31.62), which was 17% higher than initial price after it witnessed strong demand from investors, fetching the company more than $1.14 billion. The IPO was announced a month before.
– In June, Australia based music streaming service Guvera was looking to raise up to $56.7 million (about Rs 390.7 crore) through an initial public offering (IPO), as it looks to compete with Apple Music, Spotify, Pandora and others.
– In May, Vodafone India, the Indian subsidy of the Vodafone Group had chosen Bank of America Merrill Lynch, Kotak Investment Banking and UBS as its joint global advisors for its expected IPO launch in India.
– In February, Quick Heal IPO was looking to raise Rs 450 crore through an initial public offering. The issue opened on February 8 and the face value of each share is Rs 10.
– In January, online retailer ShopClues said it had IPO plans in 2017. The company had secured $100 million in funding at the time.