HSL Mobile App GTPL Hathway IPO - Issue Details
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Background & Operations
GTPL Hathway Limited (GTPL) is a leading regional Multi System Operator ( MSO ) in India, offering cable television and Broadband services. It is the number 1 MSO in Gujarat with a market share of 67% accounting for approximately 3.7 million of 5.6 million cable television households in Gujarat and 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 3.0 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. It accounted for a 14% share of the total cable carriage and placement fee market in India in Fiscal 2016. As of January 31, 2017, its 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, it seeded approximately 6.55 million STBs and had approximately 5.69 million active digital cable subscribers. As of January 31, 2017, GTPL had 228, 217 broadband subscribers (based on the number of broadband subscribers of its Subsidiary, GTPL Broadband Private Limited; the broadband business of it was transferred to GTPL Broadband Private Limited with effect from April 1, 2016). As of January 31, 2017, itprovided broadband services primarily in the state of Gujarat and had established a home pass of approximately 1.05 million households.
GTPL provides cable television signals to its subscribers either directly or through affiliated LCOs. It generally structure its relationships with LCOs such that the LCO continues to be the principal contact with its subscribers in the relevant local area. GTPL’s primary source of revenue for cable services is subscription income received from subscribers and placement / carriage income received from carriage fees payable by broadcasters for carrying their channels and placement fees payable by broadcasters for placing their channels on a preferred channel number or position. As of January 31, 2017, it offered up to 285 pan - India standard definition channels, 158 regionally - transmitted standard definition channels, 32 pan - India high definition channels and 39 regionally - transmitted high definition channels on its digital cable platform. It also owned and operated 27 channels offering localized content developed for the states in which it broadcast, including a range of religious and cultural content, film, music and educational channels. GTPL also has the right to place the “Gujarat News” channel on its network, which is produced by its Group Company, Gujarat Television Private Limited. It produces its own content and also offer third - party content on its local channels to ensure that it has a suitable mix of content that appeals to a range of demographics. Its local content offering is a key strength, providing it with a competitive advantage to attract , retain and grow its subscriber base.
Objects of Issue:
The Offer comprises the Fresh Issue by GTPL and an Offer for Sale by the Selling Shareholders.
GTPL will not receive any proceeds from the Offer for Sale by the Selling Shareholders and the proceeds received from the Offer for Sale will not form part of the Net Proceeds. The company proposes to utilise the funds which are being raised through the Fresh Issue, towards funding the following objects:
1. Repayment/pre payment, in full or part, of certain borrowings; and
2. General corporate purposes.
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