India’s largest cable service operator by revenues Hathway Cable & Datacom is raising additional Rs 150.40 crore (nearly $24.7 million) through preferential allotment of shares to Singapore-based CLSA Global Market Pte Ltd, as per a stock market disclosure. This comes as back-to-back private placement for the cable operator which disclosed plans to raise $50 million last week.
In a meeting held on September 10, the company received its board’s approval to allot 4.7 million fully paid-up equity shares at a price of Rs 320 a piece, aggregating Rs 150.4 crore (around $24.7 million). The allotment of shares is, however, subject to approval from the shareholders of the company.
Last week, Hathway announced it is raising around Rs 300 crore ($50 million) through a preferential allotment of shares to Small Cap World Fund Inc and American Funds Insurance Series – Global Small Capitalization, which are managed by Capital Research and Management (Capital Group). The two funds will together pick around 5.8 per cent stake of the diluted equity base.
With the twin issues, Capital Group will own around 5.6 per cent while CLSA will pick 2.8 per cent stake.
Last year Hathway had raised Rs 250 crore through preferential allotment to its promoters and other investors. It had also raised Rs 150 crore from existing PE investor Providence besides its promoters and separately 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 Thursday, shares of the company were trading at Rs 303 each at 11:45 AM, up 0.88 per cent on the BSE in a weak Mumbai market.
(Edited by Joby Puthuparampil Johnson)