IPO Update: Hathway IPO Fails To Shine On Day One

Just when we thought that the IPO Golden Period is back with an amazing debut by Jubilant Foodworks IPO, looks like we have a dud in place already.Hathway IPO has not been able to generate much interest from investors on day one.Hathway IPO only managed to get only 46% of its shares subscribed.

The issue received bids of 1.04 crore equity shares against 2.27 crore shares on offer for public (0.46 times), according to the data available on the NSE website.

Hathway has come out with an offering of 2.27 crores at price band of Rs.240 –265 and is expecting to raise close to 600 crores from the market.However, the IPO has seen timid response especially from the institutional investors,

Non-institutional investors have subscribed 2.43 times the shares reserved for them, while the institutional buyers subscribed 0.28 times.

The lack of interest from the institutional investors is evident from the difficulties that Hathway is facing in its business operations.

Zee Turner, a provider of television channels like POGO,HBO , Zee Tv is considering switching off its channels from the Hathway Cable network.They have cited Payment Defaults as the prime reason for considering a pull out.

Moreover , some noted analysts predict that the current P/E ratios and the forward earnings projections of Hathway do not have provisions for a huge upside from the IPO price.This can be a huge deterrent for investors looking to make a quick profit from IPO’s.

But it is only early days and the IPO subscriptions might pick up soon.However, the business outlook if not hugely positive and they are definetely having issues on the supply side which makes the IPO a little tricky.

Not that it matters but i would not suggest investing in Hathway IPO.

What is your opinion on Hathway IPO ? Is there a potential upside or this one will turn out to be a dud IPO.

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