NEW DELHI: Encouraged by the significant improvement in performance in Q3-FY16 when the company achieved financial turn-around for the first time by reporting Profit Before Tax of Rs 56 crore, the promoters of Siti Cable Network Limited have infused fresh funding amounting to Rs 530 crore.
This forms the first tranche of the previously announced Rs 680 crore funding.
As part of this Rs 530 crore capitalisation, Siti Cable board has allotted Rs 8.57 crore equity shares to promoter group entities. With this, the total promoter holdings in Siti Cable has now increased to ~69.8 per cent.
In addition, Rs 5.71 crore warrants and Rs 5.1 crore optionally fully convertible debentures (OFCD) were also issued to promoter group companies. This funding was recently approved at the company’s Extra-Ordinary General Meeting held in Mumbai on 4 February, 2016. These funds will be utilised primarily to reduce debt.
Siti Cable currently has 12 million subscriber base, out of which 7.8 million are digital customers. Despite deferment of digitisation in various states, during the current quarter, the company has added one million digital customers.
Speaking about this fresh fund infusion by promoter group entities, Siti Cable executive director and CEO V D Wadhwa said, “Promoter fund infusion of Rs 530 crore re-affirms Siti Cable’s growth story and our commitment to create sustainable value for all stake-holders. Continuous focus on operational excellence has led to Siti Cable achieving a financial turn-around in Q3FY16 for the first time in the history of the company.”
“During the current unstable economic environment, this is a significant development in the industry wherein other players are looking to further divest their equity in the market, Siti Cable’s promoters have shown greater faith in the business and its growth potential by infusing funds at a premium to the current market price,” he added.
“We believe that the Indian television distribution industry is at the cusp of an important phase, where customer needs and demands will guide overall growth. At Siti Cable, we have already been taking huge strides to offer great value to customers and this fresh funding will go a long way in ensuring the same,” Wadhwa concluded.
