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Siti Cable gets board nod to raise $100 mn via QIP

MUMBAI: Subhash Chandra-promoted multi-system operator (MSO) Siti Cable Network Ltd, which is planning to seed six million set-top-boxes (STBs) in Phases III and IV of digitisation, has got the board approval to raise up to Rs 600 crore ($100 million) through issuance of securities.

vd-wadhwa-siti-cableOn raising via qualified institutional placement (QIP), Siti Cable CEO VD Vadhwa told TelevisionPost.com that the money is likely to come in before the end of 2014.

The company, which is looking at a total digital subscriber base of 10 million and has a gross funding requirement of Rs 1,200 crore (Rs 12 billion), will need Rs 600 crore only, as it is expecting to collect the remaining Rs 600 crore (Rs 6 billion) from activation charges.

The company informed the BSE, “The board of directors of the company at its meeting held on 17 July, inter alia, has approved in-principle raising of funds through private 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.”

As of 31 March, after Phases I and II, the digital subscriber base of the company stood at 4 million.

In an earlier interaction, Vadhwa had told TelevisionPost.com “The expectation is to convert our analogue base into digital, so we will be targeting a digital subscriber base of 10 million after Phases III and IV.”

According to Wadhwa, out of the gross fund requirement of Rs 1,200 crore, the promoters were putting in Rs 240 crore in the current fiscal to take care of the funding for the next six months.

Meanwhile, the Siti Cable counter settled Friday’s session at Rs 28.30 a share, up 1.62 per cent on the BSE.

Also read:

Siti Cable reaches four million digital subscribers
Siti Cable open to acquisitions, plans to seed 6 mn STBs in Phases III and IV
Siti Cable will be open to investors when valuation is ripe