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11.2.10

BUSINESS NEWS:-Hathway Cable IPO fully subscribed; retail demand tepid

MUMBAI: The initial share sale offer of Hathway Cable & Datacom managed to get fully subscribed on the final day of offer on Thursday, even
as retail investors stayed away from putting in bids for the issue.

The issue received bids for over 3.08 crore shares representing 1.36 times the offer size of 2.27 crore shares, as per the data available with the National Stock Exchange.

The portion reserved for qualified institutional buyers was subscribed 1.5 times, while the non-institutional investors bid for 4.22 times the shares reserved for them.

However, retail demand remained tepid as investors bid for only 0.19 times the shares reserved for them, NSE data shows.

"... At the lower and the upper end of the price band respectively the issue price factors in the entire expected improvement in the operating matrix and does not leave much of an upside," domestic brokerage Sharekhan said in a note.

The company offered 2.77 crore shares in the IPO at a price band of Rs 240-265 a piece, aiming to mop up between Rs 666-737 crore in total.

The issue had received commitment worth Rs 120 crore from as many as 13 anchor investors, including Franklin India Funds, DSP Blackrock Funds, Reliance Capital Trustee, Copthall Mauritius Investment.

The company had finalised allocation of 49.95 lakh equity shares to 13 anchor investors at Rs 240 a piece -- the lower band of the IPO.
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