SITI Cable receives approval from FIPB to raise Rs 3240 mn from promoter entities

The promoter entities firms have released the first tranche of Rs 810 million to the company & the balance tranches will be available as per business requirements

e4m by exchange4media Staff
Updated: Mar 22, 2013 8:35 PM
SITI Cable receives approval from FIPB to raise Rs 3240 mn from promoter entities

SITI Cable Network, as part of its commitment for timely implementation of digitisation, has received the approval from FIPB to raise Rs 3240 million from promoter entities.

To capitalise on digitisation regime, the promoter entities firms have released the first tranche of Rs 810 million to the company, and the balance tranches will be available as per the business requirements.

The company eyes to gain a clear edge over competition by offering enhanced TV viewing experience to consumers, and improve its ARPU from current levels.

For the wider digitisation roll out, the company needs to invest in upgrading its digital infrastructure further and enter into newer strategic markets. The company believes that it is well poised to benefit from the ongoing digitisation implementation and penetrate the market at a faster rate.

The company has implemented the first phase of digitisation of television signals in its key markets of Kolkata, New Delhi and Mumbai.

In its Phase II cities, the company is aggressively seeding the Set-Top-Boxes (STBs) to meet the deadline.

Subscriber wise billing and collection has been initiated in its Delhi & Mumbai market. The company has made significant progress on billing and collections in Delhi and making a good progress in Mumbai too. The company is far ahead of other operators in terms of subscriber wise billing and collection.

In Kolkata, the company has come over the initial resistance and the billing has been started since mid February 2013 for over one million subscribers.

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

As per the approval received from Foreign Investment Promotion Board (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 approximately 63 per cent.

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