Hathway to invest Rs 5.8 bn from IPO proceeds

MUMBAI: Hathway Cable & Datacom plans to utilise Rs 5.8 billion out of the net proceeds of its proposed initial public offering (IPO), bulk of which will be for customer acquisition and digitisation of cable TV.

Hathway is looking at a valuation of $900 million-to-$1 billion, an industry source says. The multi-system operator (MSO) will have a public issue of up to 27.75 million, consisting of a fresh issue of up to 2 million equity shares (Rs 10 each) and an offer for sale of 7.75 million shares.


Private equity investors ChrysCapital and Morgan, who are partially exiting through an offer for sale, are expected to get around $80 million.

"The final valuation of Hathway, however, will depend on the pricing of the IPO through the book building process," the source avers.

Post IPO, the promoters‘ holding will fall to 49.24 per cent while News Corp‘s stake will dilute from 20.2 per cent to 17 per cent. The foreign holding, in fact, will fall from 42.74 per cent to 31.33 per cent, following the IPO.

Hathway will utilise Rs 2.44 billion towards acquisition of MSOs and LCOs (local cable operators), Rs 1.56 billion for digital capital expenditure, services and set-top boxes, Rs 830 million for broadband infrastructure and Rs 967 million for repayment of loans. Hathway has a debt of Rs 4.01 billion (as of 31 March 2009) on a standalone basis and Rs 4.34 billion on a consolidated basis.

The company, which filed a preliminary draft prospectus for its IPO, posted a consolidated revenue of Rs 6.73 billion in FY‘09 while EBITDA stood at Rs 1.03 billion.

Hathway incurred a net loss of Rs 620.60 million for the fiscal ended 31 March 2009. The net worth of the company (as of 31 March 2009) was Rs 5.15 billion.

Latest Reads
India, China to propel APAC, beat CAS Europe market share

APAC is expected to overtake the market share of Europe in future due to an increasing demand for digital TV set-up boxes in countries such as China and India. North America and Europe dominated the global CAS market in 2015. APAC region is estimated to mark a growth rate of 12.0 per cent CAGR...

Technology Hardware Set-top Boxes
India lucrative market for 4K UHD STBs: Grand View Research

Here’s a view on the demand for 4K or ultra high definition (UHD) set-top boxes (STBs) in India.

Technology Hardware Set-top Boxes
Infor appoints Dass as south Asian subcontinent V-P

Infor, a leading provider of business applications specialized by industry and built for the cloud, has appointed Ashish Dass as the vice president and managing director for the south Asian subcontinent. Infor software helps eliminate the need for costly customization through embedded deep...

Technology Software Applications
Siti & DishTV opt for Conax conditional access

The Essel group has been using Conax’s tech for sometime now for its Siti Network (earlier known as Siti Cable). Now the group has extended that partnership for another product for both Siti Network and DTH operator Dish TV India. This time it is for the cardless set top boxes that the two are...

Technology Hardware Set-top Boxes
Imagine Communications extends functionality of Selenio One unified transcoding platform to OTT

MUMBAI: Imagine Communications, empowering the media and entertainment industry through transformative innovation, today introduced a high-density adaptive bitrate (ABR) transcoding product built on Selenio One™, the company’s software-defined linear transcoding platform. Selenio One is designed...

Technology Hardware Components
DJI Makes Your Smartphone Smarter with the New Osmo Mobile

DJI, the world leader in creative camera technology, Thursday launched the Osmo Mobile, an extension for smartphones that turns them into intelligent, precision camera systems.

Technology Hardware Components
Prime Focus Tech gets funding from PE firm Ambit Pragma

MUMBAI: Prime Focus Technologies (PFT) – the technology offshoot of media services company Prime Focus - informed the Bombay stock exchange today that it had received its first round of funding from growth capital private equity fund Ambit Pragma.

Technology Software Applications
Three new products developed by C-DOT launched on its Foundation Day

Communications Minister Manoj Sinha today expressed the hope that 100,000 Gram Panchayats (GPs) will be connected through Optical Fibre Cable (OFC) by March next to set up a network infrastructure to serve the rural masses.

Technology Hardware Distribution
Genpact and BITS partner to build talent in the field of analytics

Genpact (NYSE: G), a global leader in digitally-powered business process management and services, today announced a partnership with premier technical education university Birla Institute of Technology and Science (BITS) for offering training programs in the field of analytics.

Technology Software Middleware

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories