Hathway Cable & Datacom sees dismal debut

Settles at Rs 207.80 on BSE, at a discount of 13.41% to the IPO price of Rs 240

Hathway Cable & Datacom saw a dismal debut today, 25 February 2010. The stock settled at Rs 207.80 on BSE, at a discount of 13.41% to the initial public offer price of Rs 240.

Earlier, the Hathway Cable & Datacom stock listed at Rs 246 on the BSE, a premium of 2.5% over the issue price of Rs 240. The stock hit a high of Rs 246 and low of Rs 206.20.

The counter clocked high volume of 62.48 lakh shares on BSE.

Hathway Cable & Datacom's initial public offering (IPO) of 2.77 crore shares, which ended on 11 February 2010, was subscribed 1.36 times. The company had fixed the IPO price at the lower end of the Rs 240-265 a share price band.

On 8 February 2010, the company received a commitment for Rs 119.88 crore from 13 anchor investors. The company issued 49.95 lakh equity shares to 13 anchor investors at Rs 240 a piece.

Hathway Cable & Datacom is a leading cable television services provider in India as well as one of the leading cable broadband services providers.

The company's plans to use the funds raised through the recently concluded IPO to fund customer acquisitions; investment in the development of digital services and set top boxes; investment in the development of broadband infrastructure, capital expenditure and services; repayment of loans; and fund expenditure for general corporate purposes.

For the period of six months ended September 2009, it has reported net loss of Rs 35.63 crore on total income of Rs 364.92 crore.