Hathway Cable, Den Networks Shares Fall On Promoter Stake Sale Plans
Shares of Hathway Cable & Datacom Ltd. and Den Networks Ltd. fell after various entities of Reliance Jio Infocomm Ltd. that are promoters of the cable services providers decided to sell stake through an offer-for-sale.
Jio Content Distribution Holdings Pvt., Jio Internet Distribution Holdings Pvt. and Jio Cable and Broadband Holdings Pvt., classified as promoter group entities, plan to sell 34 crore shares or 19.1% of the total equity of Hathway Cable & Datacom, according to an exchange filing. The floor price was fixed at Rs 25.25 apiece, a discount of 11.7% to Thursday’s closing.
Separately, Jio Futuristic Digital Holdings Pvt., Jio Digital Distribution Holdings Pvt. and Jio Television Distribution Holdings Pvt. plan to sell 5.5 crore shares or 11.6% of Den Networks’ total equity. The floor price of Rs 48.5 apiece is at a discount of 11.5% to Thursday’s closing.
The offer-for-sale of both companies have opened for non-retail investors on March 26 and will open for retail investors on Tuesday, April 30, since Monday is a market holiday on account of Holi.
As of December, the promoters owned a 94.1% stake in Hathway Cable and 86.5% in Den Networks.
In October 2018, Reliance Industries, the parent of Reliance Jio, had agreed to purchase a controlling stake in both of India’s largest cable and wired internet service providers for more than Rs 5,200 crore. “With local cable operators now as part of the Jio ecosystem, we look forward to bringing Jio’s advanced JioGigaFiber and Smart Home Solutions to more Indian homes, even quicker,” Mukesh Ambani, chairman and managing director at RIL, had said in a media statement then.
Shares of Hathway Cable fell as much as 8.2% as of 9:30 a.m. to Rs 26.25 apiece, the lowest in nine months. Shares of Den Networks, too, declined as much as 6.2% to Rs 51, and are down for the third straight day.