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Last Updated : Oct 17, 2018 07:22 PM IST | Source:

Hathway to raise Rs 2,940 crore via preferential allotment to Reliance Jio

This is at an issue price of Rs 32.35 per equity share.

Moneycontrol News @moneycontrolcom
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Hathway Cable, on Wednesday, announced raising funds to the tune of Rs 2,940 crore through preferential allotment to Reliance Jio.

The company told stock exchanges that the money was being raised by creating, offering, issuing and allotting, in one or more tranches, 90.88 crore preferential shares. This is at an issue price of Rs 32.35 per equity share.

hathway networks

Subject to the approval of the shareholders, the firm has also sought to increase the authorised share capital of the company from Rs 200 crore to Rs 400 crore.

Brokerage houses had pegged the deal to be positive for the company as it would increase its broadband business.

"Potential deal will give Reliance Industries access to broadband homes and subscribers, and will drive market share gains and help gain wallet share among consumers at top-end," CLSA had said in its research note.

Macquarie said the primary benefit of this deal would be gaining access to the last mile, and the deal will strengthen the bargaining power of Hathway and Den with regard to broadcasters.

At the close of market hours, Hathway Cable was quoting at Rs 29.50, down Rs 0.85, or 2.80 percent. The stock touched an intraday high of Rs 31.50 and an intraday low of Rs 28.65.

Also Read: Reliance Ind Q2 profit rises 0.6 percent; GRM at Rs 9.5/bbl
First Published on Oct 17, 2018 07:11 pm
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