Cable television and broadband service firm Hathway Cable and Datacom is looking to raise upto Rs737 crore from its upcoming initial public offer opening on 9 February 2010.
According to Milind Karnik, president-finance and company secretary said, “we are looking to raise between Rs666 crore and Rs737 crore from this IPO. Around Rs234 crore will be utilised for customer acquisition while the rest will be used to expand our broadband business, repayment of loans and efforts towards digitization.”
The price band has been fixed at Rs240-265 a share and the issue of 27.75 million shares, will open on February 9 and close on February 11. The company will have 3-4 anchor investors, the names of which will be disclosed shortly, added Karnik.
The joint co-ordinators and book running lead managers are Morgan Stanley India Company and UBS Securities India, while the Book Running Lead Manager is Kotak Mahindra Capital Company.
Karnik also explained that with the upcoming public issue the stake of global media house News Corporation would be decreased to around 17% as compared to 20.12% held at present. In 2000 News Corp had picked up 26% stake in the company. Karnik said, ”They have not sold any shares in the company, but with the issue of additional shares, their stake in the company will go down.”
At present Hathway reaches about 8.2 million homes across 125 cities and towns and has about 3 lakh broadband users.