Mumbai, July 4: Multi System Operator GTPL Hathway made a very tepid debut in stock markets on Tuesday. The company sold its shares on both bourses of NSE and BSE. While the shares traded for Rs 172.05 in Bombay Stock Exchange (BSE), it traded for Rs 172.20 on the National Stock Exchange.
GTPL Hathway mainly offers services such as cable television and broadband. The issue price for the same was fixed between Rs 167 to Rs 170 per share. While the shares managed to trade slightly higher than the issue price, its performance remained far from stellar.
Similar shares that were recently launched including CSDL, DMart and S Chand others witnessed a far more robust performance on their debut. GTPL Hathway, however, did manage to oversubscribe by 1.53 times in its listing period between June 21 to June 23.
The company raised nearly Rs 485 crore from the listing, of which Rs 145 crore were obtained from anchor investors. In its note, ICICIdirect commented on the GTPL Hathway listing and said, “Though the company remains one of the few profit-making MSOs, we remain wary of the cable industry structure wherein LCOs hold the key for effective monetisation pass through. There is also a risk of disruption in the broadband business from Jio’s foray into FTTH. The stock is available at a multiple of 7.5 times FY17 annualised EV/Ebitda, on the higher band.”
In its report on June 16, ICICI Securities Ltd added, “Gujarat is an important market for broadcasters and advertisers with 5% viewership share from the market on an all-India basis and more than 8% of the Hindi speaking market in India in 2015. Hence, the company accounted for 14% share of the total cable carriage and placement fee market in India in FY16.”