SITI Cable Network will invest Rs 2,430 million — primarily for business expansion and to partially reduce debt.
The Indian cable television service provider has achieved 4 million digital customers as on 31 March 2014.
SITI Cable Network is targeting to grow subscriber base to 10 million in FY 2014-15.
As per the Foreign Investment Promotion Board (FIPB) approval in March 2013 to raise Rs 3,240 million from promoters, the company has already received first tranche Rs 810 million in March 2013 and balance tranche of Rs 2430 million. With this total promoter shareholding rises to 72.82 percent.
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 and 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.”
SITI Cable estimates that the package wise billing and the collection will be in line by beginning of the next quarter. It made significant progress on subscriber wise billing and collections in its phase-2 markets too.