Stock of this Hinduja Group company has zoomed 40% in 2 days

NXTDIGITAL said it has received overwhelming response for its rights issue, with the company receiving Rs 560.13 crore against an issue size of Rs 288.61 crore

Shares of NXTDIGITAL moved higher by nearly 19 per cent to Rs 509.80 on the BSE in Friday's intra-day trade in an otherwise weak market. In comparison, the S&P BSE Sensex was down 0.79 per cent or 462 points at 57,999 points at 01:40 pm.

In the past two trading days, the stock of the Hinduja Group company has zoomed 40 per cent after NXTDIGITAL announced that its rights Issue was subscribed by 1.94 times or 194 per cent. Against an issue size of Rs 288.61 crore, the company has received Rs 560.13 crore. The stock had hit a 52-week high of Rs 569.94 on January 11, 2021.

NXTDIGITAL is the media vertical of the global Hinduja Group. The media and communications company is India's premier integrated digital delivery platforms company with a presence in digital cable, satellite (HITS), broadband, content syndication and teleshopping.

"The company's rights issue of equity shares of 2 shares for every 5 shares held in the company (aggregating a total of 9.6 million shares) which closed on November 29th, 2021 was subscribed 1.94 times. The overwhelming response reflects the shareholders confidence in the company and vindicates the vision charted out by the media group, to continue to transform into an end-to-end digital solutions platform," NXTDIGITAL said.

According to the management, the company has been taking conscious steps to liquidate non-core assets and pare its debt thereby. "In line with the company's objectives of paring debt, against the sale of land at Hyderabad, the Company has already received 25 per cent of the total consideration of Rs 69.30 crore. Considering that the conditions precedent for the sale have been completed within the agreed timelines the Company expects the transaction to close before the end of the financial year and the entire proceeds to be realized," the management said.

Besides continuing to clock significant growth in its broadband business, NXTDIGITAL will also operationalise the infrastructure sharing model with other Multi-System Operators (MSOs) on HITS, which has secured permissions to become India’s first digital content distribution PaaS platform. "The model will help MSOs not just reduce cost and improve their quality of service, but also facilitate their expansion into markets, especially rural, where connectivity costs are a deterrent to digital proliferation," the company said in a press release.