Hem Securities has come out with its report on GTPL Hathway. The research firm has recommended to "Avoid " the IPO in its research report as on June 20, 2017.
Co is a leading regional MSO in India (Source: MPA Report), offering cable television and broadband services. As of January 31, 2017, co’s digital cable television services reached 189 towns across India, including towns in Gujarat, West Bengal, Maharashtra, Bihar, Assam, Jharkhand, Madhya Pradesh, Tel-angana, Rajasthan and Andhra Pradesh. As of January 31, 2017, co seeded approximately 6.55 million STBs and had approxi-mately 5.69 million active digital cable subscribers. As of Janu-ary 31, 2017, Company had 228,217 broadband subscribers (based on the number of broadband subscribers of co’s Subsid-iary, GTPL Broadband Private Limited; the broadband business of Company was transferred to GTPL Broadband Private Lim-ited with effect from April 1, 2016). As of January 31, 2017, co provided broadband services. As of January 31, 2017, co of-fered up to 285 pan-India standard definition channels, 158 regionally-transmitted standard definition channels, 32 pan-India high definition channels and 39 regionally-transmitted high definition channels on its digital cable platform. Co also owned and operated 27 channels offering localized content developed for the states in which co broadcast, including a range of religious and cultural content, film, music and educa-tional channels. Co intends to raise funds for repayment of cer-tain borrowings worth of Rs 240 Cr through fresh issue while it is bringing offer for sale of upto 14,400,000 Equity shares.Valuation
At price band of Rs 167-170 ,co is bringing the issue at p/e multi-ple of around 78 on FY17 Eps of Rs 2.19/share . Co’s valuation looks expensive at current level. Hence we recom-mend "Avoid" on issue.
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