Hathway IPO plans to raise around $100 million or 4000 million Rs. through its initial public offering (IPO), as per the news sources.
Out of this 100 million $ IPO, 50% of it, i.e. $50 million will be raised by direct sale of shares to foreign institutional investors (FIIs).
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Post Hathway IPO, the stake of existing shareholders will fall by 10-25 per cent, depending on the premium that the IPO pricing will require.
As of now, the Star Group holds around 22 per cent stake while private equity major ChrysCapital holds 14 per cent in Hathway, through a purchase made by them for $60 million (Rs 2.65 billion). Founder-promoter Rajan Raheja holds the remaining 64 per cent stake.
"Hathway has got a FIPB (foreign investment promotion board) clearance for Rs 2.17 billion. This is the start of a process for an impending IPO. Hathway will issue shares to the FIIs to raise $50 million out of the proposed $100 million IPO," the source says.
Due to the FIPB clearance nod, it has opened another option for Hathway - the option of going for a pre-IPO private placement. "The clearance means that Hathway will have that option. But the multi-system operator (MSO) needs to raise more money and so is readying for the IPO," adds the source.
The merchant bankers, book running lead managers are not yet finalized, but Hathway has initiated that process.
When is the Hatway IPO expected: In around 6 months time.
Where will the Hatway IPO proceeds be used?
Hathway will utilise the IPO proceeds mainly to fund its digital cable expansion plans. Hatway is launching its DTH version, following the government regulation of CAS or conditional access system. The major cost for that is the digital set up box, which needs subsidy. Hathway may also go for acquisition, hence it will also require investments to make acquisitions.
| Further details about Hathway IPO offerings are awaited. Lets see how this Hathway IPO performs. | Table of Contents |
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