GTPL Hathway, which offers cable TV and broadband services, is all set to make a debut on exchanges on July 4. The issue price is fixed at Rs 170 per share.
Experts feel the listing price is likely to be around its issue price, given the tepid response to the public issue and grey market premium of around of Rs 2-4 over the IPO price.
The initial public offering, which was opened for subscription during June 21-23, was oversubscribed 1.53 times as the reserved portion of qualified institutional buyers was oversubscribed only 1.48 times and non institutional investors 2.85 times. The portion set aside for retail investors was subscribed 99 percent.
GTPL Hathway raised nearly Rs 485 crore through the public issue, of which it garnered Rs 145 crore from anchor investors.
The IPO consisted of a fresh issue of Rs 240 crore and offer for sale of up to 1.44 crore shares, with the price band of Rs 167-170 a share.
The money raised through fresh issue will be utilised towards repayment of loan and other general corporate purposes while offer for sale money will go to selling shareholders (promoters - Aniruddhasinhji Jadeja, Kanaksinh Rana, Gujarat Digi Com Private Limited and Hathway Cable and Datacom; and other than promoters - Amit Shah).
Incorporated in August 2006, GTPL Hathway provides cable television and broadband services in 189 towns, including towns in Gujarat, West Bengal, Maharashtra, Bihar, Assam, Jharkhand, Madhya Pradesh, Telengana, Rajasthan and Andhra Pradesh, as of January 2017.It provides cable television signals to subscribers either directly or through affiliated local cable operators (14,606 as of January 2017). It has completed roll-out of set top boxes in Phase I, Phase II and Phase III areas and is working towards completing the roll-out of set top boxes in Phase IV areas.