Hathway Cable & Datacom Ltd has announced that its initial public offering will open for subscription on February 9. The issue involves 2.7 crore shares at a face value of Rs 10 each.

The Rajan Raheja Group promoted, Hathway was established in 1995 and is now a leading cable television services provider in India with presence in over 125 cities across the country. The company also provides high-end cable broadband services in 18 cities. Its subscriber base touched 3,22,000 in the December 2009 quarter.

The price band has been fixed between Rs. 240 and Rs. 265 per share and the issue will close for subscription on February 11. The price of the shares is to be decided through a 100% book-building process. The company expects to raise upto Rs 735 crore from the issue.

The IPO comprises of fresh issue of up to 20,000,000 equity shares and an offer for sale by Monet Limited and MSPI Mauritius (I) Limited of 7,210,000 and 540,000 Equity Shares, respectively.

Qualified Institutional Buyers will have about 60% of the Issue allocated to them, out of which about 5% will be exclusively for Mutual funds. Additionally 10% of the issue will be allotted on a proportionate basis to Non-Institutional Bidders along with at least 30% reserved for allocation to the retail investors.

The shares will constitute 19.43% of the post issue paid-up capital of the company. The minimum bid has been fixed at 25 equity shares and in multiples of 25 equity shares thereafter.

Hathway plans to use the raised capital in parts of Rs 243 crore for acquisition of new customers and Rs 156 crore for converting its analog networks to digital.

The issue is to be listed on both the National stock Exchange of India and the Bombay Stock Exchange. CRISIL Limited has given the issue 3/5 grade indicating an average IPO performance is expected.

The Book Running Lead Managers for the issue are Morgan Stanley India Company Private Limited and UBS Securities India Private Limited.