MUMBAI: Essel Group’s subsidiary Siti Cable Network has decided to raise funds worth Rs 600 crore through the issuance of securities. This will be used for operations of the company.
In a statement to the BSE, Siti Cable has said that it has received in-principle approval from its board of directors to raise funds through “issuance of securities such as Equity or Equity related instruments up to rupee equivalent of US$ 100 millions - through private placement / Qualified Institutions 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.”
This is subject to approval from shareholders and other such approvals. The board has also approved the draft of the postal ballot notice for seeking approval from members of the company including issuance of securities.
The promoters had pumped in Rs 324 crore in three tranches between March 2013 to April 2014. This had increased the promoter shareholding to 72.82 per cent. These funds were being used for business expansion and debt reduction.
The company’s CEO VD Wadhwa had in an interview to indiantelevision.com in January 2014 said, “Phases III and IV of digitisation has a total universe of about 90 million. Of these, we are targeting 6 to 7 million homes. At a gross level, we will require an investment of Rs 1200 crore. On a net basis, we are expecting an investment to the tune of Rs 600 crore. The funding of phase III will be largely done through warrants’ funding of Rs 243 crore, which is likely to be invested by promoters before March 2014. Balance funding requirement will be met through internal accruals and raising of further equity, as may be required.”