Reliance to sell 11.61% stake in Hathway to comply with minimum public shareholding norm
The promoter group plans to sell 20,54,43,340 equity shares at a floor price of Rs 21.50 per equity share
Reliance Industries Limited (RIL) plans to sell an 11.61% stake in Hathway Cable and Datacom for Rs 442 crore to retail and non-retail investors. The promoter group plans to sell 20,54,43,340 equity shares at a floor price of Rs 21.50 per equity share.
The share sale is being undertaken to comply with SEBI guidelines of having a minimum of 25% public shareholding. Currently, Reliance holds 86.61% in Hathway. This means that the promoters have to offload an 11.61% stake to public shareholders to comply with the SEBI norms.
Promoter group companies Jio Content Distribution Holdings Private Limited, Jio Internet Distribution Holdings Private Limited, and Jio Cable and Broadband Holdings Private Limited propose to sell in aggregate up to 20,54,43,340 equity shares of Hathway.
As part of the offer, non-retail investors can purchase shares on 26th April while retail investors and non-retail investors who choose to carry forward their un-allocated bids from T Day can participate in the share purchase on 27th April. The sale shares are proposed to be sold through a separate, designated window of BSE and the NSE.
As reported earlier, Reliance Industries had announced plans to sell stakes in Hathway Cable and Datacom, and DEN Networks to comply with SEBI's minimum public holding norms. The conglomerate had planned to sell stakes worth Rs 853 crore and Rs 269 crore in Hathway and DEN respectively through an offer for sale (OFS).
Promoter group companies Jio Futuristic Digital Holdings Private Limited, Jio Digital Distribution Holdings Private Limited, and Jio Television Distribution Holdings Private Limited had proposed to sell an 11.63% stake in DEN and 19.09% stake in Hathway for sale.
As part of the offer, non-retail investors can purchase shares on 26th April while retail investors and non-retail investors who choose to carry forward their un-allocated bids from T Day can participate in the share purchase on 27th April. The sale shares are proposed to be sold through a separate, designated window of BSE and the NSE.
As reported earlier, Reliance Industries had announced plans to sell stakes in Hathway Cable and Datacom, and DEN Networks to comply with SEBI's minimum public holding norms. The conglomerate had planned to sell stakes worth Rs 853 crore and Rs 269 crore in Hathway and DEN respectively through an offer for sale (OFS).
Promoter group companies Jio Futuristic Digital Holdings Private Limited, Jio Digital Distribution Holdings Private Limited, and Jio Television Distribution Holdings Private Limited had proposed to sell an 11.63% stake in DEN and 19.09% stake in Hathway for sale.
Post the OFS, the promoter holding in Hathway fell to 86.61% from 94.09% while in DEN the promoter holding fell to 74.9% from 86.53%. While the promoter holding in DEN complies with SEBI guidelines, the company had to undertake another round of share sale in Hathway to comply with the said guidelines.
