Siti Cable Seeks Shareholders' Nod to raise up to $100 Million

New Delhi: Siti Cable Network Ltd has sought approval from its shareholders to raise up to $100 million (Rs 642 crore approximately) through equity shares via public issue, private placement or qualified institutional placement (QIPs) routes.

Siti Cable in a filing to the BSE said it intends to use the funds to meet expenditure to expand its business and working capital requirements and to reduce debts.

The company sought shareholders' approval to raise funds "through one or more placements of equity shares in domestic and/or one or more international markets whether by way of private placement or otherwise, in one or more tranches, so that the total amount raised shall not exceed Rupee equivalent of $100 million".

In October 2014, the company's shareholders had approved raising of funds of up to $100 million by passing a special resolution through postal ballot, however, against which it could only raise Rs 221.11 crore, it added. 

"Since the validity of the shareholders' approval is 12 months, it is proposed to seek fresh approval of the shareholders in this regard," Siti Cable said. 

Siti Cable said it will use funds to meet "expenditures in connection with implementation of digital address system in phase III and IV, ongoing acquisition of multi system operators (MSO)/Local cable operators (LCOs) and primary points, business expansion including value added services
(VAS), etc."

It also intends to use funds raise in "reduction of debts; working capital requirements; and other general corporate business purposes".

The company's annual general meeting is on August 27. 

Shares in Siti Cable, on Tuesday, ended 1.56 per cent higher at Rs 35.75 apiece on the BSE.