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Dish TV offers installment option to its shareholders
Tuesday, 11 Nov 2008 Televisionpoint.com Correspondent | Mumbai
Dish TV India, the Essel Group owned direct-to-home (DTH) company, has decided to give options to its shareholders to pay the price of the rights offer in three installments and within 18 months.
In a board meeting held on Monday, the company said it has approved Rs 6 to be paid on application, another Rs 8 in 3-9 months of allotment and a final installment of Rs 8 to be paid between nine and 18 months.
Priced at Rs 22 a share, the rights offer aims at raising Rs 1,139 crore. The company's stock closed 4.36% higher at Rs 17.71 on BSE on Monday.
The equity expansion is very important, as Dish TV does not have the balance sheet strength to otherwise bankroll its expansion plans for the DTH market and for the fact that competition has increased with the new entrants in the sector.
Dish TV now has a subscriber base of 4.4 million, as it has mopped up 4,31,253 subscribers in the month of October. It continues to be a market leader with 54 per cent market share, with sizeable sales and distribution infrastructure of over 650 distributors and 45,000 dealers across 6,500 towns.
Tuesday, 11 Nov 2008 Televisionpoint.com Correspondent | Mumbai
Dish TV India, the Essel Group owned direct-to-home (DTH) company, has decided to give options to its shareholders to pay the price of the rights offer in three installments and within 18 months.
In a board meeting held on Monday, the company said it has approved Rs 6 to be paid on application, another Rs 8 in 3-9 months of allotment and a final installment of Rs 8 to be paid between nine and 18 months.
Priced at Rs 22 a share, the rights offer aims at raising Rs 1,139 crore. The company's stock closed 4.36% higher at Rs 17.71 on BSE on Monday.
The equity expansion is very important, as Dish TV does not have the balance sheet strength to otherwise bankroll its expansion plans for the DTH market and for the fact that competition has increased with the new entrants in the sector.
Dish TV now has a subscriber base of 4.4 million, as it has mopped up 4,31,253 subscribers in the month of October. It continues to be a market leader with 54 per cent market share, with sizeable sales and distribution infrastructure of over 650 distributors and 45,000 dealers across 6,500 towns.
