(20 September 2007 9:00 pm)

MUMBAI: SREI Group has picked up around eight per cent stake in Orissa's leading multi-system operator (MSO) Ortel Communications Ltd, signalling to the market that cable TV companies have the ability to raise doses of capital from private equity investors as the sector expects to enter into a phase of digitalisation.

Actis, a leading private equity investor in the emerging markets, already holds 13 per cent equity in Ortel while the promoters have the remaining 79 per cent stake.

Ortel has also raised a debt of Rs 250 million to fund its recent expansion. The company plans to expand its broadband and cable TV presence. It is also working at a commercial roll out of Voice over Internet Protocol (VoIP) services.

Ortel expects its revenues to grow from Rs 370 million to Rs 500 million this fiscal. "We have been a profitable company for the last few years and expect our bottomline to further improve in 2007-08," says Panda.

Private equity firms ChrysCapital and UK-based Ashmore have invested in Hathway Cable & Datacom and Digicable Network (India) this year. TV18 promoter Raghav Bahl is also gearing up to start cable TV operations.