BSE-listed IPTV provider Aksh Optifibre has announced that its board of directors has approved raising $8 million, as part of its $20 million fund raising plan. The $8 million will be raised through issue of convertible securities such as global depository receipts or foreign currency convertible bonds (FCCBs). Kailash Chaudhari, MD, Aksh Optifibre told CNBC-TV 18 that approvals have been taken for raising money on two fronts, and that this is largely for the retail end of the FCCB due in first quarter of 2010. It appears that the company is planning to repay retail lenders for an earlier issue of FCCBs worth $7 million which are due in 2010, and is using $1 million for other purposes.

In October, Aksh announced plans to raise $20 million, up from the $10-15 million it was planning in June, to boost its VoIP and IPTV subscriber base. This $8 million is a part of the $20 million fund raising plan, but will not, it appears, completely go into expanding the business. The other measures the company is taking to raise funds include the increase of authorised capital and promoters selling shares. Aksh announced the increase of authorized capital of the company from Rs. 425 million divided into 8,50,00,000 equity shares of Rs. 5 each to Rs. 475 million divided into 9,50,00,000 equity shares of Rs. 5 each. In the past two months, Chaudhari has sold a total of 453,363 equity shares and now holds just 11.13% stake. Seema Choudhari, also a promoter, sold 140,834 equity shares in October and now holds 16 equity shares in the company.

Hived Off Manufacturing Unit; Still Reporting Net Losses

Aksh is a franchisee for BSNL and MTNL for two services:  VoIP (Voice over Internet Protocol) service Pigeon, and IPTV service iControl. In October Aksh had 35,000 subscribers in 22 cities in North India and Mumbai, that’s only 2 more than in June: a slowdown? Medianama previously learnt that it by the end of the year, the company plans to rope in 80,000 subscribers for iControl and 25,000 for Pigeon. Aksh recently hived off its manufacturing operations into a subsidiary Aksh Technologies Ltd.  It expects its services business to break even after 2-3 quarters.

Details: Financials for September 2009 quarter.

Aksh reported a 17% fall in net losses to Rs 67.4 million for the quarter ending September 2009 on a sequential basis (financials for quarter ended July 2009 are here) an was 19.5% lower year on year. Net sales was down 5.8% to Rs. 429.5 million sequentially and the company managed to reduce total expenditure to Rs. 515.6 million, a similar drop of 4.9%.

Related:
Aksh To Raise $20 Million To Boost VoIP & IPTV Subscriber Base
Q409 Interview: Aksh Optifibre Looks To Raise $10-15M; Targets IPTV, VoIP OpEx Break Even By FY10 End
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