Hathway Cable & Datacom down over 3% on profit taking

The stock had surged over 10% in the previous session after board nod for demerger of broadband biz

Shares of Hathway Cable & Datacom were down 3.6% at Rs 43.70 on profit taking, amid sharp gains of over 10% in the previous session, after the board approved demerger of broadband business.

On Thursday, the company announced that its board has in-principle approved the demerger, transfer and vest the company's entire broadband business into its wholly-owned subsidiary, Hathway Broadband Private Ltd, the company said in a release.

The approval is subject to requisite approvals from the shareholders, creditors, High Courts, Department of Telecommunications, Stock Exchanges, Sebi and other applicable regulatory/governmental authorities, the release added.

Hathway Broadband intends to take the lead in driving wireline broadband penetration in India and become a key player in Prime Minister Modi's Digital India Initiative.

The stock opened at Rs 45.80 and touched a low of Rs 43.40. At 12:35pm, over 248,000 shares were traded on both the stock exchanges.