Jio content distribution, other promoter cos to offload 19% stake in Hathway Cable, Datacom

The promoter entities of Hathway Cable and Datacom Ltd plan to offload about 19 per cent stake in the company, entailing 33.79 crore shares at floor price of ₹25.25 per equity share, via stock exchange route, according to a regulatory filing.

The offer for sale of equity shares of Hathway Cable and Datacom by the promoter entities -- Jio Content Distribution Holdings, Jio Internet Distribution Holdings and Jio Cable and Broadband Holdings -- is aimed at complying with the minimum public shareholding norms.

"The sellers propose to sell in aggregate up to 33,79,83,855 equity shares held by the sellers in the company, representing 19.09 per cent of the total issued and paid-up equity share capital of the company...," according to a filing by Hathway Cable and Datacom.

The sale would take place over two trading days. The offer for sale on March 26, 2021, will be for non-retail investors only, and on March 30, 2021, for retail investors and those non-retail investors who choose to carry forward their un-allocated bids from the previous date.

The floor price for the sale has been fixed at ₹25.25 per equity share.

The shares are proposed to be sold through a separate, designated window of the BSE and the NSE.

Meanwhile, promoter entities of Den Networks propose to sell up to 5.54 crore equity shares or 11.63 per cent of the total issued and paid-up equity share capital of the company on March 26, 2021 and March 30, 2021.

Jio Futuristic Digital Holdings, Jio Digital Distribution Holdings and Jio Television Distribution Holdings, which are part of promoter and promoter group, will sell the shares at a floor price of ₹48.50 per equity share.

"The offer is being undertaken by the sellers for achieving the minimum public shareholding in the company, as prescribed under Rule 19(2)(b) and Rule 19A of the Securities and Contract Regulation (Rules), 1957 and Regulation 38 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015," a separate filing by Den Networks said.

The promoter holding in Den stands at 86.5 per cent, while for Hathway Cable and Datacom, it is about 94 per cent.

In August last year, the government notified changes in the Securities Contracts (Regulation) Rules, 1957, providing more time to listed entities to meet criteria of minimum public shareholding of 25 per cent.