Stock market update: Hathway Cable tumbles as OFS begins

Hathway Cable & Datacom slumped 8.57% to Rs 26.15 after the offer for sale (OFS) opened for non-retail investors today, 26 March 2021.

Through the OFS, the company’s promoters Jio Content Distribution Holdings, Jio Internet Distribution and Jio Cable and Broadband Holdings propose to sell up to 33,79,83,855 equity shares (representing 19.09% stake).

The floor price for the OFS is Rs 25.25 per equity share, a 11.71% discount to Hathway Cable & Datacom’s closing price of Rs 28.60 on Thursday, 25 March 2021.

As of 31 December 2020, Jio Content Distribution Holdings holds 42.34% stake, Jio Internet Distribution holds 16.97% stake while Jio Cable and Broadband Holdings holds 12.65% stake in the company.

The OFS opened on Friday (26 March 2021) for non-retail investors, while both retail as well as non-retail investors will be able to subscribe on Tuesday (30 March 2021). A total of 10% of the total offer size is reserved for retail investors.

As on 13:30 IST, the OFS received subscription for 3,70,35,032 shares, recording a subscription of 12.18% on the base non-retail offer size of 30,41,85,470 shares.

Hathway Cable and Datacom is one of the largest multi system operator (MSO) & cable broadband service providers in the country.

The company’s consolidated net profit declined 6.96% to Rs 62.56 crore on a 1.90% fall in net sales to Rs 442.25 crore in Q3 FY21 over Q3 FY20.

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