Siti Cable gets first tranche of Rs 810 million

To issue share warrants to promoters whose shareholding after conversion of the warrants will rise close to 73 per cent from the existing 63 per cent

BestMediaInfo Bureau | Delhi | March 21, 2013

Siti Cable Network Ltd, as part of its commitment for timely implementation of digitisation, has received the approval from FIPB to raise Rs 3,240 million from promoter entities. To capitalise on the digitisation regime, the promoter entities have released the first tranche of Rs 810 million to the company, and the balance tranches will be available as per business requirements.

For the wider digitisation rollout, the company needs to invest in upgrading its digital infrastructure further and enter into newer strategic markets. The company believes that it is well poised to benefit from the ongoing digitisation implementation and penetrate the market at a faster rate.

The company has implemented the first phase of digitisation of television signals in its key markets of Kolkata, New Delhi and Mumbai. In the 38 Phase II cities, the company is aggressively seeding set-top boxes (STBs) to meet the deadline.

Subscriber wise billing and collection has been initiated in its Delhi and Mumbai markets. The company has made significant progress on billing and collections in Delhi and is making good progress in Mumbai too. The company is far ahead of other operators in terms of subscriber-wise billing and collection.

In Kolkata the company has overcome the initial resistance and the billing has been started since mid-February this year for over 1 million subscribers.

The company estimates that by beginning of the next quarter, the subscriber-wise billing and collection will be in line once the subscribers choose the channels/packages of their choice and pay accordingly.

Under the approval received from Foreign Investment Promotion Board (FIPB), the company will issue 162 million warrants convertible into equivalent number of equity shares at a price of Rs 20 per warrant. The total promoter shareholding after conversion of all the warrants will rise close to 73 per cent from the existing 63 per cent.

Info@BestMediaInfo.com

Info@BestMediaInfo.com