- Star Gold Select HD partners select DTH ops to showcase ‘Mughal-E-Azam’ in colour, B&W
- ALTBalaji offers subtitles for its original shows in three regional languages
- Unitech Moves Supreme Court Against Government Taking Over
- Court sends accused to police custody for two days in actress case
- UP shocker: 15-year-old cancer survivor gang-raped, then raped by passerby too
Siti Cable raises Rs 221.11 cr via QIP
MUMBAI: Siti Cable has raised Rs 221.11 crore (Rs 2.21 billion) through a share sale, indicating a bullish sentiment in the market after the new Narendra Modi-led BJP government has come to power.
The Subhash Chandra-promoted multi-system operator (MSO) plans to use the proceeds to mainly fund the digitisation of its network. Part of it will also be invested in broadband infrastructure.
Siti Cable issued 63.17 million shares via the qualified institutional investors.
The company had earlier proposed to raise up to Rs 250 crore (Rs 2.50 billion) and had set the floor price at Rs 36.41 per share. However, the shares were allotted at a price of Rs 35 (including a premium of Rs 34) apiece, or at a discount of Rs 1.41 per share.
HDFC Trustee Company picked up 50 per cent, or 3,15,87,270 shares, while remaining were allotted to Polus Global Fund, Copthall Mauritius Investment Ltd, Reliance Capital, Orange Mauritius Investments, Macquarie Emerging Markets Asian Trading PTE and Morgan Stanley Asia.
Ambit Corporate Finance and Motilal Oswal Investment Advisors acted as the book running lead managers of the issue.
The fund raising via the QIP will help the MSO to expand its digital cable TV and broadband footprint.
Siti Cable is looking at a total digital subscriber base of 10 million. Its digital subscriber base stood at 4.85 million, according to data available till 31 December 2014. The broadband subscriber base was at 54,000.
The company has also been acquiring direct points from the local cable operators (LCOs). Its direct point subscriber base as of 31 December 2014 stood at approximately 40,000.
Last year, Siti Cable had got the board approval to raise up to Rs 600 crore ($100 million) through issuance of securities.