GTPL Hathway Limited allots Rs. 145.43 cr to anchor investors at Rs. 170 per Equity Share
Mumbai, June 21, 2017: GTPL Hathway Limited (the “Company” or “Issuer”) has finalized the allocation of 8,555,294 Equity Shares at Rs. 170 per Equity Share (upper end of the Price Band) aggregating to Rs. 145.43 crore to anchor investors.
Anchor investors include: Acacia Banyan Partners – 30.94%; Government Pension Fund Global – 18.56%; BNP Paribas Equity Fund – 5.03%; BNP Paribas Long Term Equity Fund – 2.92%; BNP Paribas MidCap Fund – 5.85%; BNP Paribas Dividend Yield Fund – 2.34%; BNP Paribas Balanced Fund – 1.05%; HTCL-HDFC Prudence Fund – 15.13%; DB International Asia Limited – 10.62%; Vittoria Fund SR LP – Asia Portfolio – 7.56%.
The Company proposes to open on Wednesday, June 21, 2017, an initial public offering of equity shares of face value of Rs. 10 each (“Equity Shares”) for cash (including a share premium) (the “Offer”) comprising of a fresh issue of Equity Shares aggregating up to Rs. 2,400 million (“Fresh Issue”) and an offer for sale of up to 14,400,000 Equity Shares – comprising up to 1,136,000 Equity Shares by Mr. Aniruddhasinhji Jadeja, up to 440,000 Equity Shares by Mr. Kanaksinh Rana, up to 5,480,000 Equity Shares by Gujarat Digi Com Private Limited, up to 7,200,000 Equity Shares by Hathway Cable and Datacom Limited and up to 144,000 Equity Shares by Mr. Amit Shah (collectively the “Selling Shareholders”) (“Offer For Sale”). The Bid/ Offer will close on Friday, June 23, 2017.
The Price Band for the Offer is fixed at Rs. 167 to Rs. 170 per Equity Share. Bids can be made for a minimum of 88 Equity Shares and in multiples of 88 Equity Shares thereafter.
The Book Running Lead Managers (“BRLMs”) to the Offer are JM Financial Institutional Securities Limited, BNP Paribas, Motilal Oswal Investment Advisors Limited and Yes Securities (India) Limited.
The Equity Shares offered through the RHP are proposed to be listed on BSE Limited (“BSE”) and National Stock Exchange of India Limited (“NSE”).
The Offer is being made through the Book Building Process in compliance with regulation 26(1) of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009, as amended (“SEBI ICDR Regulations”), wherein not more than 50% of the Offer shall be allocated on a proportionate basis to qualified institutional buyers (“QIBs”). The Company and the Selling Shareholders may, in consultation with the BRLMs, allocate up to 60% of the QIB Portion to Anchor Investors (“Anchor Investor Portion”) on a discretionary basis, out of which at least one-third will be available for allocation to Mutual Funds only subject to valid Bids being received from domestic Mutual Funds at or above the Anchor Investor Allocation Price. Such number of Equity Shares representing 5% of the Net QIB Portion (defined herein below) shall be available for allocation on a proportionate basis to Mutual Funds only, and the remaining Net QIB Portion shall be available for allocation on a proportionate basis to all QIBs, including Mutual Funds, subject to valid Bids being received at or above Offer Price. Further, not less than 15% of the Offer shall be available for allocation on a proportionate basis to Non-Institutional Investors and not less than 35% of the Offer shall be available for allocation to Retail Individual Investors in accordance with the SEBI ICDR Regulations, subject to valid Bids being received from them at or above the Offer Price. All Investors (except Anchor Investors) shall mandatorily participate in this Offer only through the Application Supported by Blocked Amount (“ASBA”) process, and shall provide details of their respective bank accounts in which the Bid amount will be blocked by the Self Certified Syndicate Banks (“SCSBs”).
GTPL Hathway Limited is a leading regional MSO in India (Source: MPA Report), offering cable television and broadband services. It is the number 1 MSO in Gujarat with a market share of 67% of cable television subscribers in 2015, accounting for approximately 3.7 million of 5.6 million cable television households in Gujarat (Source: MPA Report). It is the number 2 MSO in Kolkata and Howrah in West Bengal with a market share of 24% of cable television subscribers in this market in 2015, accounting for approximately 0.7 million of 3.0 million cable television households in Kolkata and Howrah (Source: MPA Report). As of January 31, 2017, its digital cable television services reached 189 towns across India, including towns in Gujarat, West Bengal, Maharashtra, Bihar, Assam, Jharkhand, Madhya Pradesh, Telangana, Rajasthan and Andhra Pradesh. As of January 31, 2017, the Company has seeded approximately 6.55 million STBs and had approximately 5.69 million active digital cable subscribers.
Gujarat is an important market for broadcasters and advertisers as it contributed to more than a 5% viewership share on an all-India basis and more than 8% of the Hindi speaking market in India in 2015 (Source: MPA Report). The Company accounted for a 14% share of the total cable carriage and placement fee market in India in Fiscal 2016 (Source: MPA Report).
As of January 31, 2017, the Company had 228,217 broadband subscribers (based on the number of broadband subscribers of the subsidiary of the Company, GTPL Broadband Private Limited). As of January 31, 2017, it provided broadband services primarily in the state of Gujarat and had established a home pass of approximately 1.05 million households. Its digital services platform is supported by its owned intercity and intra-city optical fiber cable network, which as of January 31, 2017, spanned approximately 5,406 kilometers (on a consolidated basis), and the fiber network leased to the Company, which spanned approximately 3,615 kilometers (on a standalone basis). In 2016 calendar year, it expanded broadband offering in the states of Maharashtra, Rajasthan, Andhra Pradesh, Bihar, Jharkhand and West Bengal.
The Company’s digital cable services across our coverage area are supported by one main digital
head-end located in Ahmedabad, which it is currently in the process of upgrading with advanced technology from Harmonic International AG, and another main digital head-end located in Kolkata. It also has four support digital head-ends located in Dibrugarh, Adilabad, Visakhapatnam and Patna, which are connected via leased-line network from various telecom operators, who in turn deliver these leased line circuits through the Company’s own optical fiber cable network spanning over 25,000 kilometers (on a standalone basis). Its broadband network includes an optical fiber network and advanced internet nodes to enable seamless connectivity, higher broadband speed and can support multiple services including VoD and OTT. It source equipment from some of the leading international vendors of digital and electronic components, including Harmonic International AG, NDS Limited, Shenzhen Skyworth Digital Technology Co. Limited, Changhong (Hong Kong) Trading Limited, Tele System Communication Pte. Limited, and Nagravision S.A. and use an advanced software platform, such as Magnaquest Technologies Limited, to support services.
The Company was incorporated in August 2006 by the promoters, Mr. Aniruddhasinhji Jadeja and Mr. Kanaksinh Rana, through the consolidation of cable service businesses in Ahmedabad and Vadodara. In October 2007, Hathway acquired a 50% share of its business. Over the past ten years, the Company has grown both organically, through the expansion of services, and inorganically, through acquisitions, joint ventures or by entering into Right to Use Agreements with other smaller regional MSOs, LCOs and ISOs.
