Siti Cable Network Ltd, a cable television services provider promoted by Essel Group, has received the board approval to raise up to $100 million through issuance of securities, the company said in a stock market disclosure. This is subject to shareholders’ and other approvals.
“The board of directors of the company at its meeting held on July 17, 2014, inter alia, has approved in-principle raising of funds through private placement/qualified institutions placement (QIP)/external commercial borrowings (ECBs) with rights of conversion into equity shares/foreign currency convertible bonds (FCCBs)/American depository receipts (ADRs)/global depository receipts (GDRs) or any other securities convertible into or exchangeable for equity shares or securities linked to equity shares,” according to the statement.
Siti Cable will use the money for the company’s operations.
Subhash Chandra-controlled Siti Cable is one of country’s leading multi system operators. With 56 analog and 14 digital head ends and a network of more than 12,000 km of optical fibre and coaxial cable, it provides its television cable services in 60 cities and the adjoining areas, reaching out to over 10 million viewers.
Last year in May, the firm appointed V D Wadhwa from Timex Group India as its chief executive. After a few days of this, Siti cable got the approval from FIPB to raise Rs 324 crore from its promoter companies. The first tranche of Rs 81 crore was received at the same time and the balance of Rs 324 crore was received this year in April by the company.
The company is using this money for the business expansion and to partially reduce the debt.
It plans to enter into new markets through organic and inorganic growth.
Siti Cable’s scrip was trading at Rs 27.50, down 1.26 per cent on BSE in a strong Mumbai market on Friday at 12.51 PM.
(Edited by Joby Puthuparampil Johnson)