Reliance to pare stake in Hathway Cable via OFS

Jio Content Distribution Holdings, Jio Internet Distribution Holdings and Jio Cable and Broadband Holdings, part of the promoter & promoter group, propose to sell 11.61% stake in Hathway Cable & Datacom.

The promoter group proposes to sell upto 20,54,43,340 equity shares, representing 11.61% equity of Hathway Cable, via offer for sale (OFS) of shares on the stock exchanges.

The floor price for the OFS is Rs 21.50 per equity share, a 0.69% discount to Hathway Cable & Datacom's closing price of Rs 21.65 on Friday, 23 April 2021.

The OFS will open on 26 April 2021 (T day) for non-retail investors and on 27 April 2021 (T+1 day) for retail investors and for non-retail investors who choose to carry forward their un-allocated bids from T day. A total of 10% of the total offer size is reserved for retail investors.

The OFS is being undertaken by the sellers for achieving the minimum public shareholding in the company.

As on 31 March 2021, total promoter holding in Hathway Cable & Datacom stood at 86.61%. As stipulated by the norm, promoters of listed entities are required to bring down their shareholding down to 75%.

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

The company's consolidated net profit declined 6.96% to Rs 62.56 crore on a 1.90% fall in net sales to Rs 442.25 crore in Q3 FY21 over Q3 FY20.

The scrip shed 0.92% to end at Rs 21.65 on the BSE on Friday.

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