Dish TV offloads 5% to Biyani's PE firm for Rs 2.5 billion

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ajuravi007

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MUMBAI: Deals are beginning to happen on the direct-to-home (DTH) front. Subhash Chandra-promoted Dish TV India Ltd. has diluted 4.9 per [COLOR=blue! important][COLOR=blue! important]cent[/COLOR][/COLOR] stake to Indivision Capital, the private equity arm of Kishore Biyani's Future Capital, for Rs 2.5 billion.
Dish TV is raising Rs 1.25 billion in the first tranche via issue of equity shares at Rs 100 per share, valuing the DTH company in the current transaction at Rs 42 billion.
The second tranche will raise the same amount but through conversion of warrants at Rs 130 per share. "We will use the money for acquiring customers, buying set-top boxes and building the brand," said Dish TV CEO Arun Kapoor.
Dish TV board has approved to issue and allot 12.5 million equity shares of Re 1 each to Indivision at a price of Rs 100. Indivision will also subscribe to 9.6 million warrants - each convertible into an equity share - at Rs 130 per share within 18 months from the date of issue of the warrants. The preferential allotment is subject to regulatory approvals.
Dish TV's fund-raising activties will continue as the company is in a significant customer acquisition spree, says Kapoor. The plan is to invest Rs 11 billion over two years. "We are looking at a 60 per cent equity and 40 per cent debt ratio," adds Kapoor.
Dish TV has a gross registered subscriber base of 2.6 million, adding 126,000 new customers in the month of November. The gross subscriber addition during the first eight months of FY2008 (April-November 2007) stands at 673,000. Said Dish TV chairman Chandra, “We are happy to announce the participation of IndivisionIndia Partners in our effort to provide consumers with unparalleled quality of digital television services directly to their homes. We are confident that Dish TV would deliver long term value to all its stake-holders."
 
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Neo001

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Well that was really a good news for all dishtv subscribers and hope lots of good things will happen in near future in dishtv.
 
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ItsMe

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Out of the 1.25 billion, if they are willing to spend 5% amount on improving the customer care, they will surely be the #1 DTH platform in India. But who in India is concerned about existing customers rather than acquiring new ones. :evil:
 
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its a huge amount and definitely it will put in right direction to boost theiir product and services. and hope in coming future we will see lot more happening in dishtv.
 
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Well now that is great news that Dish TV gets 1250 M rs. Also feel good because buyer is Gujju.:D :D
 
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archie

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They should spend some of the money to improve the quality of customer care. I haven't seen a private companys customer care working like a govt. company in all these years. Educate the people who handle calls, train them to answer properly, and enroll them in some english speaking course. Pathetic CC.