ajuravi007
Regulars
Dish TV is to offload 4.9 per cent of its equity to the Mauritius based Indivision India Partners for Rs 250 crore. Dish TV said the preferential issue would be in compliance with SEBI guidelines.
In a letter to the foreign investment promotion board (FIPB), Dish TV said, "The direct-to-home industry is highly capital intensive and requires huge resources. So to augment the resources of the company and to meets its funding needs the company has proposed to issue equity shares/warrants aggregating 4.91 per cent of the expanded capital of the company under the foreign direct investment route on a preferential basis to Indivision India Partners, a Mauritius-based private equity fund at a value of Rs 250 crore."
The preferential issue proposed is for the allotment of equity shares of Re 1 each at a price of Rs 100 aggregating to Rs 125 crore and issue of warrants, convertible into equity shares at a price of Rs 130 crore equity shares aggregating Rs 125 crore within a period of 18 months from the date of issue of the warrants.
After the issue of these shares and warrants, the FDI in Dish TV would still be within the limit of 20 per cent. The foreign shareholding in Dish TV is presently 12.71 per cent and FIIs is 14.30 per cent totaling 27.01 per cent. The Mauritius based Indivision has Indian individuals owning 11.46 per cent of the total paid up shares, and Indian company 50.14 per cent and foreign companies including financial institutions, mutual funds, banks and trusts 4.92 per cent.
Dish TV has already submitted its application to information and broadcasting ministry seeking approval for the proposed change in the equity capital structure of the company. The FIPB is expected to take up Dish TV's application by the end of January.
Dish TV seeks FIPB nod for Indivision stake sale | Televisionpoint.com News
In a letter to the foreign investment promotion board (FIPB), Dish TV said, "The direct-to-home industry is highly capital intensive and requires huge resources. So to augment the resources of the company and to meets its funding needs the company has proposed to issue equity shares/warrants aggregating 4.91 per cent of the expanded capital of the company under the foreign direct investment route on a preferential basis to Indivision India Partners, a Mauritius-based private equity fund at a value of Rs 250 crore."
The preferential issue proposed is for the allotment of equity shares of Re 1 each at a price of Rs 100 aggregating to Rs 125 crore and issue of warrants, convertible into equity shares at a price of Rs 130 crore equity shares aggregating Rs 125 crore within a period of 18 months from the date of issue of the warrants.
After the issue of these shares and warrants, the FDI in Dish TV would still be within the limit of 20 per cent. The foreign shareholding in Dish TV is presently 12.71 per cent and FIIs is 14.30 per cent totaling 27.01 per cent. The Mauritius based Indivision has Indian individuals owning 11.46 per cent of the total paid up shares, and Indian company 50.14 per cent and foreign companies including financial institutions, mutual funds, banks and trusts 4.92 per cent.
Dish TV has already submitted its application to information and broadcasting ministry seeking approval for the proposed change in the equity capital structure of the company. The FIPB is expected to take up Dish TV's application by the end of January.
Dish TV seeks FIPB nod for Indivision stake sale | Televisionpoint.com News