Subhash Chandra-owned Dish TV, the leading direct-to-home (DTH) television services provider, has received approval of its shareholders to raise $200 million through issue of equity to fund expansion and growth of the highly capital intensive business.
Dish TV will consider raising the amount through issue of equity or convertible bonds in the domestic or overseas market. If it decides to raise the money through a qualified institutional placement (QIP), the company may consider offering a discount of up to 5 per cent of the price to QIP investors.
Dish TV, in the notice to the shareholders, said DTH business is highly capital intensive, requiring huge financial resources from time to time. The company has been meeting these requirements through borrowings from banks, financial institutions, rights issue proceeds, issue of global depositary receipts (GDRs) and requisite funding from the promoter group from time to time.
The equity or convertible issue has been proposed considering the funding requirements and current market conditions, the company has said.
The consent of the shareholders was obtained through a postal ballot.
For the purpose of raising further equity, Dish TV has also obtained the approval of the shareholders to increase the company's authorised equity capital to Rs 1.5 billion from Rs 1.35 billion.
The promoter holding in Dish TV stands at 64.7 per cent. In 2009, US-based private equity firm Apollo Management had bought an 11 per cent stake in the company for $100 million.