Dish TV India has dipped 8% to Rs 77 on the National Stock Exchange (NSE) in intra-day trade after the company said that it is evaluating the impact of reported insolvency proceedings initiated against certain entities of the Videocon group on its proposed merger with Videocon d2h. At 10:10 am; the stock was down 7% at Rs 77.95 on back of an over two-fold jump in trading volumes. A combined 16.04 million shares changed hands on the counter on NSE and BSE. The stock of Videocon Industries was trading 2.3% higher at Rs 24.55 on NSE.
It bounced back 7% from its intra-day low of Rs 22.85. A combined 4.46 million shares changed hands on both the exchanges so far. "It has come to our knowledge that certain entities belonging to the Videocon group, including the promoters of Videocon D2h Ltd, have become subject to insolvency and /or enforcement proceedings by lenders," Essel group firm Dish TV said in a BSE filing. "In the light of the foregoing, the company is evaluating as to whether there is any impact of the same on its right and obligations under the definitive agreement and consequential effects on the transactions contemplated there under,” it added. The Advisors to the transaction have been entrusted the responsibility to evaluate the position and advise the Company with its findings/report within a period of 60 days, Dish TV said. The proposed merger has already received regulatory approvals from the Ministry of Information and Broadcasting, NCLT and from the Competition Commission of India.