IPO: GTPL Hathway Limited
Company & Business Profile
GTPL Hathway Limited was incorporated on August 21, 2006 at Ahmedabad as Gujarat Tele Link Private Limited. Pursuant to a resolution, the name of the company was change to GTPL Hathway Private Limited on May 6, 2013. The company converted into a public limited company on August 23, 2016. Consequently, the name of the company changed to GTPL Hathway Limited on September 28, 2016.
GTPL Hathway Limited is the Leading Regional Multi System Operator (“MSO”) in India, offering Cable Television and Broadband Services. The company is the number 1 MSO in Gujarat with a market share of 67% of cable television subscribers in 2015, accounting for approximately 3.7 million of 5.6 million cable television households in Gujarat (Source: MPA Report). Also, The company is the number 2 MSO in Kolkata and Howrah in West Bengal with a market share of 24% of cable television subscribers in this market in 2015, accounting for approximately 0.7 million of 3 million cable television households in Kolkata and Howrah.
Gujarat is an important market for broadcasters and advertisers as it contributed to more than a 5% viewership share on an all-India basis and more than 8% of the Hindi speaking market in India in 2015. The company accounted for 14% share of the total Cable Carriage and Placement Fee Market in India in Fiscal 2016 (Source: MPA Report).
As of January 31, 2017 their digital cable television services reached 189 towns across India, including towns in Gujarat, West Bengal, Maharashtra, Bihar, Assam, Jharkhand, Madhya Pradesh, Telangana, Rajasthan and Andhra Pradesh. As of January 31, 2017, they had seeded approximately 6.55 million STBs and had approximately 5.69 million active digital cable subscribers. As of August 31, 2016, the company received requisitions from LCOs for approximately 2.02 million STBs. As of January 31, 2017, the company had 228,217 broadband subscribers. As of January 31, 2017 they provided broadband services primarily in the state of Gujarat and had established a home pass of approximately 1.05 million households.
The company provide cable television signals in both digital and analog modes of re-transmission to their subscribers, either directly or through affiliated LCOs. They enter into business arrangements with LCOs through Interconnection Agreements, or partner with them through joint ventures or “Right to Use” Agreement to increase their subscriber base.
As of January 31, 2017, the company owned and operated 27 channels offering localized content developed for the states in which they broadcast, including 4 Religious channels, 9 Movie channels, 3 Music channels and 11 Regional channels. The company also has the right to place the “Gujarat News” channel on their network, which is produced by their Group Company, Gujarat Television Pvt. Ltd
The company has also benefited from their relationship with Hathway Cable and Datacom Limited (“Hathway”), one of their Promoter companies. Hathway is one of India’s largest cable television and broadband services providers, with a 13.3 million cable television subscriber base as of December 31, 2016. Hathway’s cable operations straddle key Indian geographies and offered cable television and highspeed cable broadband services to more than 200 cities and towns as of December 31, 2016. Hathway had approximately 12 million active STBs and had 0.85 million broadband subscribers as of December 31, 2016. To reduce the costs of operation of the business of GTPL Hathway Ltd, the company and Hathway have agreed to co-operate and explore commercial opportunities. In doing so, the company and Hathway will endeavour to jointly participate in negotiations with the broadcasters in order to achieve favourable discounts and carriage/placement rates from them.
Objects of the Issue:
– The company proposes to utilise the funds repayment/pre-payment, in full or part, of certain borrowings; and general corporate purposes.
– The company will not receive any proceeds from the Offer for Sale by the selling shareholders.
Listing:
The equity shares of the company are proposed to be listed on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE).
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