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SITI Cable Network receives first tranche of Rs 81 crore from promoters

21 Mar 2013 Evaluate

Cable television service provider SITI Cable Network, which has received Foreign Investment Promotion Board (FIPB)’s nod for raising Rs 324 crore from its promoter entities, has received its first tranche of Rs 81 crore. Meanwhile, the remaining balance tranches will be made available to the company as per the business requirements. The funds will be utilized by the company for up-gradation of its digital infrastructure and for foraying into new markets.

Back in September 2012, the company had approved the proposal for preferential issue of 16.2 crore warrants, which are convertible into equivalent number of equity shares, at an issue price of Rs 20 per warrant, to the foreign promoters Essel International and Essel Media Ventures. After the conversion of warrants, the promoter’s shareholding will increase to about 73% from the current 63%.

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