Dish TV India to raise up to Rs1,000 crore

Dish TV India initiated the process of fund-raising through permissible modes and issue of permissible securities, for an amount upto Rs. 1,000 crores, in one or more tranches, said the company in a staement

Direct-to-home arm Dish TV India today said that it got approval from the board members for the proposal for raising funds.

“Keeping in mind the requirement for funds in the Company, the Board, at its meeting held today, considered various options for fundraising and granted in principal approval to, subject to such corporate, regulatory and Board approval(s), as may be required under applicable rules, regulations and laws, explore and initiate the process of fund-raising through permissible modes and issue of permissible securities, for an amount upto Rs. 1,000 crores, in one or more tranches (‘Issue’), in accordance with applicable laws.,” the firm said in a regulatory filing.

In this regard, the Board has constituted ‘Fund Raising Committee’ for recommending, taking actions and monitoring in the matters of raising funds and related matters thereof.

Dish TV India reported a consolidated net profit of ₹86.41 crore for the third quarter ended in December 2020.

The company had reported a net loss of ₹66.77 crore in the October-December quarter a year ago.

Its revenue from the operation was down 6 per cent to ₹815.67 crore during the quarter under review as against ₹867.80 crore of the corresponding quarter.

Commenting on the results Dish TV India Group Chief Executive Officer Anil Dua said: “The effect of the pandemic is carrying on. While some uptick was expected during the festival period, it was offset by a muted consumer sentiment. Our focus on the cost front and on driving operational efficiencies however continued unabated thus leading to higher operating margins and better net profitability.”

Revenue from ‘Additional marketing, promotional fee and bandwidth charges’ was down 19.96 per cent to ₹42.9 crore as against ₹53.6 crore.

While its advertisement income was ₹9.6 crore in the third quarter of the financial year 2020-21.

Dish TV total expenses were at ₹723.94 crore as against ₹846.35 crore in the corresponding quarter of the previous fiscal, down 14.46 per cent.

Meanwhile, in a separate filing, Dish TV informed its board in a meeting held on Friday approved the divestment of the entire equity investment in Dish TV Lanka (Private) Ltd, a subsidiary of the company.

“The transaction shall be completed post fulfilment of the conditions of the Share Sale Agreement and requisite regulatory approvals. Subject to applicable laws and necessary adjustments, the consideration shall be approx 25 million sri lankan rupees,” it said.

Revenue from Dish TV Lanka is ₹4.91 crore, constituting 0.14 per cent of the total revenue of the company.

Without disclosing any further details, the company said the agreement is yet to be executed.

Over the consideration from the sale, Dish TV said: “The consideration shall be approx 25 million sri lankan rupees.”

Shares of DishTV India on Wednesday settled at ₹11.80 apiece on the BSE, up 2.61% from the previous close. Mint