Siti Cable Network rose 2.15% to Rs 21.40 at 10:55 IST on BSE after the company said the promoters have invested additional Rs 243 crore in the business to support the company's aggressive growth plans.
The announcement was made before market hours today, 3 April 2014.
Meanwhile, the S&P BSE Sensex was down 56.72 points or 0.25% at 22,494.77.
On BSE, so far 1.22 lakh shares were traded in the counter as against average daily volume of 2.55 lakh shares in the past one quarter.
The stock hit a high of Rs 21.80 and a low of Rs 21.10 so far during the day. The stock had hit a 52-week high of Rs 28.45 on 11 May 2013. The stock had hit a 52-week low of Rs 13.05 on 20 August 2013.
The stock had outperformed the market over the past one month till 2 April 2014, surging 9.69% compared with the Sensex's 6.78% rise. The scrip had also outperformed the market in past one quarter, jumping 20.75 % as against Sensex's 7.96% rise.
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The company has equity capital of Rs 45.22 crore. Face value per share is Re 1.
Siti Cable Network (Siti Cable) said it has achieved the landmark of 4 million digital customers as on 31 March 2014. Encouraged by the significant improvement in the performance in FY 2013-14 & to support the aggressive growth plan to grow subscriber base to 10 million in FY 2014-15, the promoters have invested additional Rs 243 crore in the business. As per the approval received from Foreign Investment Promotion Board (FIPB) in March 2013 to raise Rs 324 crore from promoter entities, the company has already received first tranche Rs 81 crore in March 2013 and this is balance tranche fund of Rs 243 crore. With this total promoter shareholding rises to 72.82%. The funds will be utilized primarily for Business expansion and to partially reduce debt, the company said.
Commenting on this development, Mr. V D Wadhwa, CEO of SITI Cable said, "For the wider digitization roll out, the company needs to invest in upgrading its digital infrastructure further and enter into newer strategic markets. We plan to seed over 6 million set-top-boxes in phase-3&4 markets through organic and in organic growth. We believe that we are well poised to benefit from the ongoing digitization implementation and ready to penetrate the market at a faster rate".
Separately, Siti Cable Network after market hours on Wednesday, 2 April 2014 said that as per the terms of 16.20 crore warrants issued by the company on 19 March 2013 on preferential basis, the Allotment Committee of the Board of Directors of the company at its meeting held on Wednesday, 2 April 2014 has upon receipt of balance 75% consideration aggregating to Rs 140.25 crore approved further allotment of 9.35 crore equity shares upon conversion of such remaining warrants at an issue price of Rs 20 per share. Out of 9.35 crore equity shares, 5.77 crore shares were allotted to Essel Media Ventures and 3.57 crore shares were allotted to Essel International.
It may be recalled that Siti Cable had on 19 March 2013, allotted 16.20 crore warrants convertible into equity shares at Rs 20 per share to the company's foreign promoters viz. Essel Media Ventures (10 crore warrants) and Essel International (6.20 crore warrants). Siti Cable had received an upfront amount of Rs 81 crore (Rs 5 per warrant) towards warrant subscription money from its allottees at that time.
Siti Cable Network reported a consolidated net loss of Rs 17.97 crore in Q3 December 2013, lower than net loss of Rs 23.84 crore in Q3 December 2012. Net sales rose 34.4% to Rs 158.52 crore in Q3 December 2013 over Q3 December 2012.
Siti Cable Network (erstwhile known as Wire and Wireless (India)) is a part of the Essel Group, which is one of India's leading business houses with a diverse portfolio of assets in media, packaging, entertainment, technology-enabled services, infrastructure development and education.