Ahmedabad-headquartered GTPL Hathway, which offers cable TV and broadband services, plans to raise up to Rs 600 crore, through an initial public offer (IPO) in June. GTPL Hathway’s public issue comprises fresh issuance of equity shares worth Rs 300 crore and an offer for sale up to 1.8 crore shares by the existing shareholders, according to the Draft Red Herring Prospectus (DRHP). The issue could result in an equity dilution of around 25%.
GTPL’s net worth was Rs 484.5 crore as on June 2016, in accordance with restated consolidated financial statements. Fresh issuance of equity shares worth Rs 300 crore would be a primary infusion into the company, of which up to Rs 230 crore would be utilised for debt repayment, general corporate purposes and other issue expenses.
The company had earlier considered a pre-IPO placement but later dropped its plans. JM Financial, BNP Paribas, Motilal Oswal, Yes Securities and Link Intime India will manage the public issue.
As of September 2016, GTPL’s digital cable TV services reached 169 towns across India, including towns in Gujarat, West Bengal, Maharashtra, Bihar, Assam, Jharkhand, MP, Telangana, Rajasthan and Andhra Pradesh. GTPL provided broadband services primarily in Gujarat and had catered to approximately 10 lakh households. The company is now preparing to expand both its cable TV and broadband services by deploying newer technologies such as Gigabit Passive Optical Networks (GPON) and Fibre to the Home (FTTH).
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The company was incorporated in August 2006 by promoters, Aniruddhasinhji Jadeja and Kanaksinh Rana, through the consolidation of cable service businesses in Ahmedabad and Vadodara. In October 2007, Hathway acquired a 50% share of GTPL’s business.