Hathway IPO gets tepid response on Day 1

The initial public offer (IPO) of cable television and broadband services firm Hathway Cable and Datacom today saw a lukewarm response from investors and has got subscribed only 46 per cent on first day.

The issue received bids of 1.04 crore equity shares against 2.27 crore shares on offer for public (0.46 times), according to the data available on the National Stock Exchange (NSE) website.

The company has come out with 2.27 crore shares on offer (excluding anchor investors portion of 49.95 lakh equity shares) at a price band of Rs 240-265 a share. At the upper end of the price range, it expects to mop up about Rs 603 crore from the market.

Till now, non-institutional investors subscribed 2.43 times the shares reserved for them, while in institutional buyers subscribed 0.28 times.

Yesterday, the company received a commitment for Rs 119.88 crore from 13 anchor investors. The company has finalised allocation of 49.95 lakh equity shares to 13 anchor investors at Rs 240 a piece--the lower band of the IPO.

Star TV holds 26% of the company's paid-up capital, while Hathway Cable and Datacom Limited, Hathway Investments Limited and United Cable Networks Private Limited together hold 51% in the company.

The company is aiming to acquire cable operators, either through a complete equity buyout or by entering into joint ventures. The company proposes to spend around Rs 245 crore from the issue proceeds towards acquiring new customers.

ARRS Infrastructure Projects, the other public issue, on the second day, managed to subscribe 3.48 times with most of the bids coming in from institutional investors. The issue received bids for over 87.52 lakh shares, as against 25.12 lakh shares on offer, thereby garnering a demand of 3.48 times the issue size. The company has hit the primary market with an initial public offer (IPO) of 25.12 lakh equity shares with a price band of Rs 410-450 a piece.

The portion reserved for qualified institutional buyers got subscribed 5.27 times the shares on offer. Besides, the non-institutional and retail investor portion was subscribed 1.47 times and 58 per cent of the shares reserved for them respectively.