Hathway Cable and Den Networks slip as promoters start stake sale via OFS

Income tax statistics released for 2015-16 showed that less than a million (733,940) entities reported short-term capital gains or losses. This is much lower than the total number of demat accounts (23 million) and active stock market traders (5 million) in the corresponding period. Photo: Ramesh Pathania/Mint
Income tax statistics released for 2015-16 showed that less than a million (733,940) entities reported short-term capital gains or losses. This is much lower than the total number of demat accounts (23 million) and active stock market traders (5 million) in the corresponding period. Photo: Ramesh Pathania/Mint
 2 min read . Updated: 26 Mar 2021, 03:25 PM IST Ashwin Ramarathinam

Mumbai: Shares of Hathway Cable and Den Networks plunged 10% and 7% respectively as the companies' offer for sale (OFS) opened on Friday. Hathway Cable's floor price for the offer has been fixed at ₹25.25, a discount of 14.4% to Wednesday's closing price, while Den Network's has been set at ₹48.50, a discount of 13.55%

Hathway Cable stock was at ₹25.80, down 10%, while Den Networks fell around 7% to ₹51.20, while the benchmark index, Sensex rose 1.31%.

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Through the OFS, Den Network promoters Jio Futuristic Digital Holdings, Jio Digital Distribution Holdings and Jio Television Distribution Holdings will sell 5.5 million shares or 11.63% stake in the company at a floor price of ₹48.50 per equity share aggregating to ₹269.18 crore.

Jio Content Distribution Holdings Pvt., Jio Internet Distribution Holdings Pvt. and Jio Cable and Broadband Holdings Pvt., promoter of Hathway Cable & Datacom Ltd., plan to sell 338 million shares, or 19.1% stake at a floor price of ₹25.25, aggregating to ₹853.45 crore.

As of 31 December 2020, Jio Futuristic Digital Holdings holds 42.23% stake, Jio Digital Distribution holds 17.65% stake while Jio Television Distribution holds 18.18% stake in the company. While, Jio Content Distribution Holdings Pvt. holds 42.34%, Jio Internet Distribution Holdings Pvt. holds 16.97% and Jio Cable and Broadband Holdings Pvt. holds 12.65% stake in the company.

The share sales by founder firms are aimed at achieving minimum public holding in the companies as per the norms set by the market regulator, Securities and Exchange Borad of India (Sebi).

Bids are open for non-retail investors on Friday, and for retail investors on March 30.

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In February 2020, Reliance Industries merged Den Networks and Hathway with Network18 and TV18 to consolidate Reliance Industries’ media and distribution businesses. In October 2018, Reliance bought majority stakes in Den Networks Ltd and Hathway Cable and Datacom Ltd for ₹5,230 crore.

Den Networks is a leading Cable TV Distribution company in the country with a wide gamut of services including Cable TV and Broadband. The cable distribution company posted 238.8% jump in consolidated net profit to ₹65.57 crore for the Decembere quarter against ₹19.36 crore for the same quarter last year. Net sales rose 7.6% to ₹342.18 crore in December 2020 quarter over ₹318.08 crore in December 2019 quarter.

Hathway Cable & Datacom is a leading Cable Broadband service provider. It also provides Cable Television services through its wholly owned subsidiary – Hathway Digital Private Limited, which is one of the largest Multisystem operator in India. The service provider reported a 7.7% decline in consolidated net profit to ₹62.56 crore for the Decembere quarter against ₹67.24 crore for the same quarter last year. Net sales fell 1.9% to ₹442.25 crore in December 2020 quarter over ₹450.82 crore in December 2019 quarter.

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