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
Livestreaming App SWOO sees momentum in India; Launches Trivia Format in India

SWOO, a leading global livestreaming platform established in Middle East, today announced the launch of its SWOO TRIVIA SHOW ? a celebrity hosted live video streaming game show for Indians. SWOO is a user friendly, engaging and feature-rich live broadcasting app available across Android/ iOS/ Web...

Technology Software Applications
TiVo exits STB business

MUMBAI: TiVo is exiting the manufacturing, sales and distribution of set-top boxes to a yet-undisclosed third party, the company has said.

Technology Hardware Set-top Boxes
IET India IoT Panel joins hands with exhibitions india group for the 3rd edition of IoT india congress

IoT India Congress is India?s Platform of Platforms for the Internet of Things conceptualized by IET India IoT Panel, a think tank constituted by the Institution of Engineering and Technology (IET) India. The 3rd edition of IoT India Congress will be hosted in collaboration with India?s leading...

Technology Software Firmware
Tata Elxsi's Automation suite adopted by pan-European Media and Telecommunications Company

Tata Elxsi, a global design and technology services company, announced the licensing of its integrated test automation and monitoring suite ?FalconEye? to a pan-European media and telecommunications company for OTT automation and improving streaming performance.

Technology Software Firmware
Verimatrix recognized for contributions to latin american Pay-TV market with PRODU award win at NAB Show

LAS VEGAS: Verimatrix, a specialist in securing and enhancing revenue for network-connected devices and services, has received the PRODU Award for Best Pay-TV Technology Contribution on behalf of its MultiRights? OTT solution. MultiRights helps service providers effectively navigate the modern OTT...

Technology Software Firmware
Amagi debuts machine-learning powered content-preparation suite

Amagi, a cloud-based technology provider for media processing, has launched Tornado, a machine learning-based content preparation service that enables TV networks and content owners to scale their operations and accelerate broadcast workflows.

Technology Hardware Components
Sharp and TiVo extend interactive program guide deal to power content Discovery across entertainment devices

MUMBAI: TiVo Corporation (NASDAQ: TIVO), a global leader in entertainment technology and audience insights, today announced that Sharp Corporation will further utilize TiVo?s G-Guide HTML across Sharp 4K smart TVs and Ultra HD Blu-ray recorders in Japan, TiVo?s G-Guide xD app and remote schedule...

Technology Hardware Components
HARMAN announces Priyanka Chopra as global brand ambassador

HARMAN International, a wholly-owned subsidiary of Samsung Electronics Co., Ltd. focused on connected technologies for automotive, consumer and enterprise markets, today announced that actress, singer, producer and philanthropist Priyanka Chopra has been named a global brand ambassador for the...

Technology Hardware Components
Etere HSM expands interoperability with Grass Valley

Etere HSM features an integration with Grass Valley that improves interoperability, streamlines connectivity, enables faster content processing and includes deep archive capabilities. Etere introduces a new integration layer between Etere Hierarchical Storage Management (HSM) and Grass Valley...

Technology Hardware Components

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories