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Moumita Bakshi Chatterjee
Meera Mohanty

New Delhi, April 15 Hathway Cable & Datacom Ltd, which plans to raise its foreign holding to 42.13 per cent by issuing compulsorily convertible debentures (CCDs) to Infrastructure India Holdings Fund (IIHF) and Morgan Stanley Asia, has received a green signal from the Government for the proposal.

The cable Multi System Operator is proposing to issue CCDs to Mauritius-based IIHF and Morgan Stanley Asia, which would be converted into equity shares amounting to 4.58 per cent and 3.82 per cent, respectively. Hathway had sought permission to issue 11,850 fully mandatory convertible debentures to IIHF, and another 9,875 CCDs to Morgan Stanley Asia, at a face value of Rs 1 lakh each.

The current foreign equity holding of 36.83 per cent in the company is shared by Mauritius-based, Asian Cable Systems and Monet Ltd. “After conversion of 11,850 and 9,875 CCDs into equity shares by IIHF and Morgan Stanley, the paid-up capital will increase to Rs 121.56 crore, and foreign equity percentage will also increase from the current 36.83 per cent to 42.13 per cent,” sources said.

FDI up to 49 per cent for ISP is permissible under the automatic route; the company is also engaged in Cable TV services, in which foreign investment up to 49 per cent (FDI and FII) is permitted with prior approval of Foreign Investment Promotion Board and in compliance with Cable TV Networks (Regulation) Act, 1995. The proposal, which came up for discussion in March 28 meeting of the board, entails a foreign investment flow of about Rs 217.25 crore.

More Stories on : Telecommunications | Overseas Borrowings | Foreign Institutional Investors

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