funding will be through a mix of rights issue and debt. The
existing shareholders will be participating in the rights
issue. Ortel promoters currently hold 63 per cent stake in
the company, after buying out SREI Groups equity in
2008. New Silk Route has 35 per cent stake and the balance
two per cent is with the employees and others.
are looking at a rights issue and the two existing shareholders
have agreed in principle to subscribe to it. Post the issue,
the shareholding will be almost the same. We have a funding
requirement of Rs 500 million over 12-24 months depending
on our growth and we will do this with debt and the funds
that we raise from the rights issue, Ortel CEO Bibhu
Prasad Rath tells Indiantelevision.com without disclosing
the size of the rights issue.
company has parallelly started looking for private equity
investment. We got Sebi clearance for the IPO (initial
public offering) last August but have decided to shelve it
due to market conditions. We will have to file again as the
one-year period is getting over (companies have to tap the
market within a year of Sebi clearance or it expires). We
will wait until conditions in the market improve before taking
any such decision. We have mandated Equirus to find us a private
equity investor at the right valuation, says Rath.