MUMBAI: , the media vertical of the Hinduja Group, said its rights issue was oversubscribed nearly two times.
The company, which has a presence in digital cable, headend-in-the-sky (HITS) and broadband businesses, has raised Rs 560.13 crore, against an issue size of Rs 288.61 crore, it said Thursday.
The right issue was of two shares for every five shares held in the company, aggregating a total of 9.6 million shares. The issue closed on November 29.
With this rights issue, the debt-to-equity ratio of the company will reduce to 1.5 times from the pre-issue debt-to-equity ratio of over 4 times, the company said.
“This is a clear statement of confidence in the company demonstrated by the shareholders; and vindicates the vision of the media group in continuing to transform to an end-to-end digital solutions platform,” the company said in a statement.
Lately, the company has been taking steps to liquidate non-core assets to pare its debt.
ET first reported in May that NXTDigital was looking at substantially reducing its debt, at Rs 871.85 crore then, by the end of the fiscal year.
“The rights issue was another positive step taken by the company toward our stated objective of reducing our overall debt,” said Vynsley Fernandes, MD and CEO, NXTDigital. “This is without doubt a robust position from which to continue on our path of digital transformation.”
In October 2020, the company sold shares of Hinduja Leyland Finance for about Rs 100 crore and repaid debt to that extent.
Also, against the sale of land at Hyderabad, the company has received 25% of the total consideration of Rs 69.30 crore.
Amar Chintopanth, wholetime director and CFO, NXTDigital, said: “The company expects the transaction to close before the end of the financial year and the entire proceeds to be realised. Such proceeds would also be utilised toward reducing the company’s debt.”
NXTDigital claims presence in over 1,500 cities and towns across India, covering nearly 4,500 pin codes. It is the only integrated platform in the country that offers digital cable, satellite via its HITS platform and broadband, with speeds up to 1,000 Mbps.
The company will also operationalise the infrastructure sharing model with other cable operators on HITS.
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