In order to capitalise on the digitisation regime and for a wider digitisation rollout, cable television service provider Siti Cable Network said it needed to invest in upgrading its digital infrastructure further and enter into newer strategic markets.
The company has implemented the first phase of digitisation of television signals in Mumbai, Kolkata and New Delhi. In the 38 Phase II cities, the company is aggressively seeding set-top boxes to meet the deadline.
In Kolkata, the company said it has overcome initial resistance to the billing system, which has started since mid February for over 1 million subscribers.
The company, which received approval from the Foreign Investment Promotion Board (FIPB) to raise Rs 324 crore from promoter entities, has got its first tranche of Rs 81 crore from the promoters.
Siti Cable received 25 per cent of the total preferential issue. As of December 2012, Essel International and Essel Media Ventures held 1.27 per cent and 3.63 percent stake in the company, respectively. The promoters are to get 6.2 crore warrants and 10 crore warrants, respectively.
Warrants are derivative instruments added to issues to make them more attractive. It entitles the holder to buy a specific amount of securities at a specific price. Promoters can convert their warrants in to shares.
Under the approval received from the FIPB, the company will issue 16.2 crore 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 the existing 63 per cent.
In September 2012, the company had approved the proposal for preferential issue to the foreign promoters, Essel International and Essel Media Ventures.