Shares of Hathway Cable & Datacom were up over 10% at Rs 45.35 on the BSE after the company announced that its board has in-principle approved the demerger, transfer and vest the company's entire broadband business into its wholly-owned subsidiary, Hathway Broadband Private Ltd, the company said in a release.
The approval is subject to requisite approvals from the shareholders, creditors, High Courts, Department of Telecommunications, Stock Exchanges, Sebi and other applicable regulatory/governmental authorities, the release added.
Hathway Broadband intends to take the lead in driving wireline broadband penetration in India and become a key player in Prime Minister Modi's Digital India Initiative.
The stock opened at Rs 42 and touched a high of Rs 46.40. At 2:05pm, over 2 million shares were traded on both the stock exchanges.
