Hathway Cable gains as RBI withdraws restrictions on purchases of shares by RFPIs

Hathway Cable & Datacom surged 8.42% to Rs 43.80 at 10:25 IST on BSE after the Reserve Bank of India announced removal of restrictions placed on purchase of shares of the company by Registered Foreign Portfolios Investors with immediate effect.

Meanwhile, the S&P BSE Sensex was up 318.95 points or 1.24% at 26,033.61

On BSE, so far 74,206 shares were traded in the counter as against average daily volume of 30,858 shares in the past one quarter.

The stock hit a high of Rs 46.90 and a low of Rs 43.75 so far during the day. The stock hit a record high of Rs 77.12 on 19 November 2014. The stock hit a 52-week low of Rs 36.55 on 25 August 2015.

The stock had underperformed the market over the past one month till 26 August 2015, falling 14.13% compared with 8.53% fall in the Sensex. The stock also underperformed the market in past one quarter, declining 26.61% as against Sensex's 6.6% decline.

The mid-cap company has an equity capital of Rs 166.10 crore. Face value per share is Rs 2.

The Reserve Bank of India (RBI) yesterday, 26 August 2015, notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now purchase shares of Hathway Cable & Datacom after the RBI has, with immediate effect, withdrawn the restrictions placed on the purchase of shares of the company after the company passed necessary resolutions at the level of its Board of Directors and shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs/RFPIs. The investments can go up to 74% (revised from earlier limit of 49% stipulated under Foreign Direct Investment policy) of the company's paid up capital through GDR/ADR/FDI under the Portfolio Investment Scheme (PIS) in primary market and stock exchanges.

Hathway Cable & Datacom reported a net profit of Rs 43.91 crore in Q1 June 2015, as compared with net loss of Rs 0.92 crore in Q1 June 2014. Net sales rose 5.4% to Rs 263.17 crore in Q1 June 2015 over Q1 June 2014.

Hathway Cable & Datacom is one of the largest multi system operator (MSO) and cable broadband service providers in India.

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