MUMBAI: Hathway Cable & Datacom is planning to raise Rs 7.35 billion through an initial public offering (IPO), making it the most valued cable TV company in the country.
Hathway is looking at an upper price band of Rs 265 per share, according to a source familiar with the development.
The company is likely to fix the lower price band at Rs 240 per share, enabling it to raise Rs 6.66 billion.
"Hathway will, however, take a final call on the IPO price band closer to the issue. The company is looking at a valuation of around Rs 37 billion," the source adds.
Hathway officials were not available for comment. The company‘s managing director and chief executive K Jayaraman could not be contacted.
Hathway is lining up a bunch of anchor investors including Templeton, the source says.
The issue will open for subscriptions on 9 February and close on 11 February. The leading multi-system operator (MSO) will have a public issue of up to 27.75 million, consisting of a fresh issue of up to 20 million equity shares (Rs 10 each) and an offer for sale of 7.75 million shares.
Hathway plans to utilise Rs 5.8 billion out of the net proceeds of its IPO, bulk of which will be for customer acquisition and digitisation of cable TV.
Hathway‘s IPO will be watched with interest by other cable companies that plan to raise capital. During the year, the market will see a flood of PSU disinvestments.
Late last year, Den Networks raised Rs 3.64 billion through an IPO. It has a market cap of Rs 24.66 billion.
