Dish TV, the largest supplier of DTH pay-TV in India, is to raise $200 million through the issue of new shares or convertible bonds. The cash will be used to fund expansion and further grow the DTH business.
The Subhash Chandra-backed operation, in a note to shareholders, explained that the DTH business is capital hungry, requiring huge financial resources from time to time. Up to now Dish TV has borrowed from the banks and other financial institutions.
As part of the process, Dish TV asked for shareholder permission to go ahead with the fund-raising exercise and also to increase the company’s authorised shareholder capital from Rupees 1.35 billion to Rupees 1.5 billion.
Chandra, and his family investment vehicles, own some 65 per cent of the business, while Apollo Management holds 11 per cent.