According to media reports, Dish TV, the country’s largest direct-to-home television company, is reaching out to private equity and institutional investors for a fresh round of fund raising, which could turn out to be the highest in the sector.
Dish is believed to have appointed investment banks UBS and Macquarie to help raise around Rs 1,000 crore ($200 million) of equity to fund expansion and investment in upgrading technology, said sources.
The promoters, the Zee Group’s Subash Chandra Goel and his family, hold close to 65 per cent stake in the company. Analysts feel a significant dilution is unlikely. “We have got the necessary approval from the Foreign Investment Promotion Board but we haven’t decided on the amount, time frame and how the money will be raised,” said R C Venkateish, chief executive
The DTH sector has a foreign holding cap at 49 per cent. In Dish, the foreign investment is 27 per cent. DTH is a system of receiving TV programmes from satellite within homes through personal dish antennas, bypassing cable operators. India is set to become the largest DTH market in the world in terms of subscribers next year, overtaking America.