India’s largest cable service operator by revenues Hathway Cable & Datacom is raising around Rs 300 crore ($50 million) through a preferential allotment of shares to a couple of funds managed by Capital Research and Management (Capital Group), as per a stock market disclosure.
At the extra ordinary general meeting held on September 5, 2014, the shareholders of the company approved the proposal to allot 9.4 million equity shares at a share price of Rs 320 a piece to Small Cap World Fund Inc and American Funds Insurance Series - Global Small Capitalization Fund, aggregating around Rs 300 crore (nearly $50 million).
While it is allotting 7.05 million equity shares to Small Cap World Fund, American Funds Insurance will be allotted 2.35 million equity shares.
The two funds will together pick around 5.8 per cent stake of the diluted equity base.
Last year Hathway had raised Rs 250 crore through preferential allotment to its promoters and other investors.
It had raised Rs 150 crore from existing PE investor Providence besides its promoters and separately raised Rs 100 crore from Steadview Capital, LTR Focus Fund and Massachusetts Institute of Technology.
The company, which runs analogue and digital cable and broadband services, generated revenue of Rs 1,583 crore with net loss of Rs 111 crore for the year ended March 31, 2014.
On Friday, shares of the company last traded at Rs 294 each, down 0.27 per cent on the BSE.
(Edited by Joby Puthuparampil Johnson)