GTPL Hathway IPO: Brokerage Views & Runup to IPO

GTPL Hathway IPO
This post on GTPL Hathway IPO tries to bring out consolidated brokerage views opinions, IPO Review / Analysis, Note/ reports and recommendation of brokerages , Analyst, Business New papers, Management views, information on Anchor investors, Subscription etc on GTPL Hathway IPO and shall be updated continuously till the closure of the issue. The information collated from various sources and reports in public domain can help investors to decide whether they should subscribe to GTPL Hathway IPO or not.

Related Posts: GTPL Hathway IPO Review
GTPL Hathway IPO: Grey Market Premium etc.

20/6/17 Grey Market Premium  NIL 

Subscription: GTPL Hathway IPO  ( x times)
  QIB NII Retail Total
Day 3  1.48  2.85  0.99  1.53
Day 2   0 .69  0 .15 0.36  0.41
Day 1   0.69   0.0  0.15 0.27

Complete Anchor List

GTPL Hathway has allotted 85.5 lakh shares at ₹170 an equity share to anchor investors aggregating to ₹145.43 crore. The Anchor investors include Private equity firm Acacia Banyan Partners,Norway’s Government Pension Fund Global, BNP Paribas, DB International Asia Ltd, Vittoria Fund SR Limited Partners ,HDFC Mutual Fund etc. 

  Click here for Complete Anchor List

Consolidated opinion of Brokerages, Analysts, Business New Paper Reports, Management Views on GTPL Hathway IPO .

Nirmal Bang: he issue has been offered in a price band of Rs 167 – 170 per equity share. The aggregate size of the offer is around Rs 480.48 crore to Rs 489.11 crore based on lower and upper price band respectively. Minimum application is to be made for 88 shares and in multiples thereon, thereafter. On the performance front, the company’s profit after tax was 528.81 cr in FY14, Rs 627.20 cr in FY15 and Rs 746.20 cr in FY16. For the first nine months of the current fiscal, it has posted net profit of Rs 16.30 cr on a turnover of Rs 663.46 crore.The company believes that their local content offering is a key strength, providing them with a competitive advantage to attract, retain and grow subscriber base and to attract advertising targeted at specific regions and cultures. The company aims to penetrate markets where it believe the market opportunity is high, the competitive intensity is low and it can target MSOs/ISOs/LCOs suitable for partnering with it. The company also intends to increase the penetration of its broadband subscriber base through a multipronged strategy, making it a value play for a long term.

Angel Broking: ” In terms of valuation, GTPL’s P/BV multiple annualised
9MFY2017 at 3.1x, as compared to peers i.e. Den Networks 1.8x, Hathway
Cable & Datacom 0.7x, Ortel Comm. 1.4x, Siti Networks 4.8x. The cable industry
is already undergoing a period of weak performance and with disruptive pricing
of new entrants, there is a high probability that the performance may weaken
further. Hence, we recommend NEUTRAL rating on the issue. “

HIndu Business Line: GTPL Hathway: Expensive, post-issue shocks possible Click Here for Details

Capital Market: “Score 35/100. At the lower price band of Rs 167 per equity share of Rs 10 face value, the P/E works out to 66 times the annualized EPS of Rs 2.5(on post-IPO equity) for nine months ended December 2016 and the P/E works out to 308.4 times the EPS of Rs 0.5 (on post-IPO equity) for the financial year ended March 2016. At upper band of Rs 170, P/E works out to 67 times the annualized EPS of Rs 2.5 (on post-IPO equity) for nine months ended December 2016 and the P/E works out to 313.2 times the EPS of Rs 0.5 (on post-IPO equity) for financial year ended March 2016.”

SMC: “GTPLH also has the right to place the “Gujarat News” channel on its network, which is produced by the Group Company, Gujarat Television Private Limited. With its own produce contents, the company also offers third party contents and thus offers mix of contents. However the company is heavily dependent on LCOs to reach the majority of its cable television subscribers, to collect subscription fees, to increase its subscriber base and to maintain its service quality standards. Along term investor with high risk appetite may opt the issue.”

Centrum: “cable television and broadband services industry is highly competitive and needs constant technology upgradation, which makes the business capital intensive. It also faces risk from other distribution channels of digital broadcasting like over the top (OTT—eg. Netflix) and direct to home (DTH). This has led to broadcasting firms reporting losses in the past. Given GTPL’s weak fundamental performance, competitive intensity and high valuation, we recommend investors to avoid the IPO’

SP Tulsiyan website:
“To summarise, weak fundamentals (huge depreciation, slim net margins, single digit RoE, high debtors), sector headwinds and inexpensive pricing make this IPO unattractive and hence an avoid.”


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