Shares of Hathway Cable and Datacom plunged 8 percent while that of Den Networks declined over 6 percent in early trade on Friday. The cable companies' shares fell after the promoter entities of these companies announced offloading of shares via offer for sale (OFS) to comply with the minimum public shareholding norms.

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Jio Content Distribution Holdings, Jio Internet Distribution Holdings and Jio Cable and Broadband Holdings, the promoter entities of Hathway Cable and Datacom Ltd plan to offload 33.79 crore shares or about 19 percent stake in the company. The floor price has been fixed at Rs 25.25 per equity share.

“The sellers propose to sell in aggregate up to 33,79,83,855 equity shares held by the sellers in the company, representing 19.09 percent of the total issued and paid-up equity share capital of the company...,” Hathway Cable and Datacom said in a regulatory filing.

The offer for sale on March 26, 2021, will be for non-retail investors only, and on March 30, 2021, for retail investors and those non-retail investors who choose to carry forward their un-allocated bids from the previous date.

Meanwhile, promoter entities of Den Networks—Jio Futuristic Digital Holdings, Jio Digital Distribution Holdings and Jio Television Distribution Holding—propose to sell up to 5.54 crore equity shares or 11.63 percent of the total issued and paid-up equity share capital of the company on March 26, 2021 and March 30, 2021. The floor price is fixed at Rs 48.50 per equity share.

“The offer is being undertaken by the sellers for achieving the minimum public shareholding in the company, as prescribed under Rule 19(2)(b) and Rule 19A of the Securities and Contract Regulation (Rules), 1957 and Regulation 38 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015,” Den Networks said in an exchange filing.

The promoter holding in Hathway Cable and Datacom is about 94 percent, while that in Den Networks stands at 86.5 percent.

In August last year, the government notified changes in the Securities Contracts (Regulation) Rules, 1957, providing more time to listed entities to meet the criteria of minimum public shareholding of 25 percent.

At 10:15 am, the shares of Hathway Cable and Datacom were trading 5.59 percent lower at Rs 27.00 apiece, while that of Den Networks were trading down 3.10 percent at Rs 53.10 on the BSE.

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Disclaimer: Reliance Industries Ltd, which owns Jio, is the sole beneficiary of Independent Media Trust that controls Network18, the parent company of CNBCTV18.com.

(Edited by : Ajay Vaishnav)

First Published:Mar 26, 2021 10:56 AM IST