Hathway Cable & Datacom sets price band of Rs 240-265 a share

IPO to open for subscription on 9 February 2010

Hathway Cable & Datacom said today it has set the price band for its initial public offering (IPO) at Rs 240-265 a share. Hathway Cable and Datacom, a cable television services provider, is entering capital market with an initial public offering (IPO) of 2.77 crore equity shares of Rs 10 each on 9 February, 2010. The issue will close on 11 February 2010.

The company has proposed a public issue of 2 crore equity shares and an offer for sale of up to 72 lakh equity shares by shareholders Monet and MSPI Mauritius. The issue will constitute approximately 19.43% of the post-issue share capital of the company. The promoters' holding will be reduced to 66.55% from 77.37%.

The company is a leading cable television services provider in India as well as one of the leading cable broadband services providers. It offers analog and digital cable television services across 125 cities and towns and high-speed cable broadband services across 18 cities.

The objects of the fresh issue are 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 on September 2009, it has reported net loss of Rs 35.63 crore and total income of Rs 364.92 crore.