SITI Cable promoters infuse Rs 81 cr in first tranche

The stock which shed 5 per cent yesterday, was down another 5 per cent today to close at Rs 23.30

SITI Cable Network Ltd, which has received the approval from Foreign Investment Promotion Board (FIPB) to raise Rs 324 crore from promoters, said today that the promoters have released the first tranche of Rs 81 crore.

As per the approval received from 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 existing apprx. 63%.

The stock which shed 5% yesterday, was down another 5 per cent today to close at Rs 23.30.

The multi-system-operator (MSO) needs funds for digitisation.
 
The company said that the balance tranches will be available as per the business requirements.
 
The MSO eyes to gain an edge over the competition by offering enhanced TV viewing experience to the consumers and improve its ARPU from current levels.
 
The company needs to invest in upgrading its digital infrastructure further and enter into newer strategic markets, it said.
 
SITI Cable said that subscriber wise billing and collection has been initiated in its Delhi & Mumbai market.

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