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Home >Market >Stock-market-news >GTPL Hathway IPO subscribed 41% on Day 2

Mumbai: The initial share sale of cable TV and broadband services provider GTPL Hathway Ltd saw a subscription of 41% on the second day of the initial public offering (IPO). As of 5 pm, the portion of shares reserved for institutional investors was subscribed 69%, while the portions reserved for high net-worth individuals and retail investors were subscribed 15% and 36%, respectively.

The company has set a price band of Rs167-170 per share for the initial share sale. The offer closes on 23 June.

The IPO will see the company raise Rs240 crore through a fresh issue of shares and a secondary share sale comprising 14.4 million shares by the promoter group. At the upper end of the price band, the secondary share sale will fetch the promoter group Rs244.8 crore.

GTPL Hathway will use the proceeds to reduce debt.

It is a regional multiple system operator (MSO) offering cable television and broadband services.

According to the company’s red herring prospectus, it has 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, while it is the number two MSO in Kolkata and Howrah in West Bengal, with a market share of 24% of cable television subscribers in this market in 2015, accounting for about 700,000 of 3 million cable television households in the twin cities.

As of 31 January, the company’s digital cable television services reached 189 towns across India, including those in Gujarat, West Bengal, Maharashtra, Bihar, Assam, Jharkhand, Madhya Pradesh, Telangana, Rajasthan and Andhra Pradesh.

GTPL Hathway is the fourth company to launch an IPO in the month of June.

On Wednesday, the share sale of Central Depository Services (India) Ltd (CDSL) witnessed a subscription frenzy from public market investors, leading to the issue being subscribed 169.45 times.

Earlier in the week, the Rs1,741 crore IPO of Ahmedabad-based pharma firm Eris Lifesciences Ltd was subscribed 3.29 times. Last week telecom equipment maker Tejas Networks Ltd saw its Rs776 public share sale being subscribed 1.88 times.

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