Hathway Cable and Datacom Limited which had opened its IPO on Tuesday the 9th of February and closed today, the 11th of December 2009 received support from the non-institutional investor category. The promoters of the company have been able to garner support from NRI’s and been able to receive the requite support tom see the issue through. The price band of the issue was between Rs 240-265 and support has come at the lower end of the price band. In all probability the issue would have to be priced at the lowest level of Rs 240.

The issue was very aggressively priced and had pricing issues because of the fact that it is a loss making company and it would be quite some time before the company starts making money. At the lower end of the price band the issue would raise Rs 666 crs of which the gross proceeds to the company would be Rs 480 crs. The objects of the issue need Rs 579.7 crs and there is a term loan component of Rs 50 crs which would mean that the company would have raised at the gross level Rs 530 crs. There are issue expenses to be deducted from the proceeds and very clearly there would be a substantial gap in the amount raised and the amount required for fulfilling the objects of the issue.

The other issue which was on simultaneously has done exceedingly well and created new records, underlying the fact that if the issue is well priced, it attracts investors.