Siti Cable Network jumps after RBI relaxes foreign investment ceiling

Siti Cable Network rose 8.70% to Rs 40 at 9:27 IST on BSE after the central bank allowed foreign investors to buy up to 49% stake in the company.

Meanwhile, the BSE Sensex was up 53.42 points, or 0.21%, to 25,676.77.

On BSE, so far 6.43 lakh shares were traded in the counter, compared with an average volume of 73,563 shares in the past one quarter. The stock hit a high of Rs 41.70 and a low of Rs 39.50 so far during the day. The stock hit a 52-week high of Rs 41.70 on 5 January 2016. The stock hit a 52-week low of Rs 27.50 on 25 August 2015. The stock had outperformed the market over the past one month till 4 January 2016, rising 9.04% compared with 0.06% decline in the Sensex. The scrip had also outperformed the market in past one quarter, rising 13.41% as against Sensex's 2.28% fall.

The small-cap company has an equity capital of Rs 67.76 crore. Face value per share is Re 1.

The Reserve Bank of India (RBI) yesterday, 4 January 2016 notified that Foreign Institutional Investors (FIIs)/Registered Foreign Portfolios Investors (RFPIs) can now invest up to 49% of the paid up capital of Siti Cable Network under the Portfolio Investment Scheme (PIS). The RBI has stated that the company has passed resolutions at its board of directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares by FIIs/RFPIs. The purchases could be made through primary market and stock exchanges, the RBI said.

As on 30 September 2015, FIIs held 13.88% stake in Siti Cable Network.

On consolidated basis, Siti Cable Network reported net loss of Rs 27.71 crore in Q2 September 2015 as against net loss of Rs 22.87 crore in Q2 September 2014. Net sales rose 6.73% to Rs 231.54 crore in Q2 September 2015 over Q2 September 2014.

Siti Cable Network is engaged in distribution of television channels through analogue and digital cable distribution network, primary internet and allied services.

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