SITI Cable Network Limited, an Essel Group Company (SITI CABLE) (BSE: 532795, NSE: SITI CABLE EQ) has received fresh promoter funding amounting to INR 530 Crores.
Encouraged by the significant improvement in performance in Q3FY16, when the company achieved financial turn-around for the first time by reporting Profit Before Tax of INR 56 Crores, the promoters have infused fresh funding. This forms the first tranche of the previously announced INR 680 crore funding.
As part of this INR 530 Crore capitalization, SITI Cable board allotted 8.57 Crore equity shares to promoter group entities. With this, total promoter holdings in SITI Cable has now increased to ~69.8%.Â In addition, 5.71 Crore warrants and 5.1 Crore Optionally Fully Convertible Debentures (OFCD) were also issued to promoter group companies. This funding was recently approved at the company's Extra-Ordinary General Meeting held in Mumbai on February 4, 2016. These funds will be utilized primarily to reduce debt.
SITI Cable currently has 12 million subscriber base, out of which 7.8 Million are digital customers. Despite deferment of digitization in various states, during the current quarter, the company has added 1 million digital customers.
Speaking about this fresh fund infusion by promoter group entities, Mr. V D Wadhwa, Executive Director & CEO, SITI Cable mentioned-
"Promoter fund infusion of INR 530 Crores re-affirms SITI Cable's growth story and our commitment to create sustainable value for all stake-holders. Continuous focus on operational excellence has led to SITI Cable achieving a financial turn-around in Q3FY16 for the first time in the history of the Company.
During the current unstable economic environment, this is a significant development in the industry wherein other players are looking to further divest their equity in the market, SITI Cable's promoters have shown greater faith in the business and its growth potential by infusing funds at a premium to the current market price.
We believe that the Indian Television Distribution Industry is at the cusp of an important phase, where customer needs and demands will guide overall growth. At SITI Cable, we have already been taking huge strides to offer great value to customers and this fresh funding will go a long way in ensuring the same."