NXTDIGITAL Limited today announced that the Company’s Rights Issue of Equity Shares of 2 shares for every 5 shares held in the Company (aggregating a total of 96,20,463 shares) which closed on November 29th, 2021 was subscribed 1.94 times. The company reported receiving a total of Rs. 560.13 crores or 194% of the Rights Issue size of Rs. 288.61 crores.
This, the Company says 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.
Said Vynsley Fernandes, Managing Director and CEO of NXTDIGITAL Limited “The Rights Issuewas another positive step taken by the company towards ourstated objective of reducing our overall debt. With this, the debt-to-equity ratio is expected to significantly come down to approximately 1.5 times vis-à-vis the pre-issue debt-to-equity ratio of over 4 times. This is without doubt, a robust position from which to continue on our path of digital transformation”.
The Company has been taking conscious steps to liquidate non-core assets and pare its debt thereby. According to Amar Chintopanth, Wholetime Director and CFO of NXTDIGITAL “In line with the company’s objectives of paring debt,against the sale of land at Hyderabad, the Company has already received 25% of the total consideration of Rs 69.30 crores. 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. Such proceeds would also be utilized towards reducing of the Company’s debt”.
NXTDIGITAL has established itself as a premier integrated digital platforms companywith a presence in over 1,500 cities and towns across India, covering nearly 4,500 pin codes today. It remains India’s only integrated platformoffering digital cable, satellite via its HITS or Headend-In-The-Sky platform and broadband, with speeds up to 1,000Mbps. It recently launched its innovative concept of owned-and-operated NXTHUBs across the country – which besides video and broadband, are future-ready to offer customers a slew of additional digital services including OTT and WiFi.
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.At a recent event, the hon’bleChairman of the Telecom Regulatory Authority of India (TRAI) also pointed out that “This (infrastructure sharing)…..will help stakeholders to save costs and become more competitive”.