Dish TV extends rally, hits 2-year high; zooms 56% in 8 trading sessions

The stock rallied 10% to Rs 19.70 on the BSE in the intra-day trades on Monday

Shares of Dish TV India continued northbound jouney, hitting a two-year high of Rs 19.70 on ralling as much as 10 per cent on the BSE in intra-day trades on Monday, in an otherwise subdued market. The stock of the broadcasting & cable TV operator was quoting higher for the eighth straight trading session and has rallied 56 per cent during the same period. It is trading at its highest level since September 2019.

At 09:30 am, the stock was trading 4 per cent higher at Rs 18.66 on the BSE, as compared to a 0.41 per cent decline in the S&P BSE Sensex. The counter saw huge volume with a combined 44.47 million equity shares having changed hands on the NSE and BSE till the time of writing of this report.

In the past one week, the share price of Dish TV India has zoomed 30 per cent after YES Bank sent a notice to the company to remove the top management, including the managing director Jawahar Lal Goel.

YES Bank is the largest shareholder of Dish TV India and holds 471.91 million equity shares, representing 25.63 per cent of the paid-up equity share capital of the company. The annual general body meeting of Dish TV India is scheduled to be held on September 27, 2021.

Dish TV, in an exchange filing on September 9, 2021, said YES Bank vide its email dated September 4, 2021, has sent special notices dated September 3, 2021, to the company.

"The company is further examining the said Special Notices for such approvals as may be required including the steps to be taken to get the candidature of proposed new directors cleared from necessary authority i.e. Ministry of Information & Broadcasting, as prior approval from the Authority is a mandatory requirement," it added.

Meanwhile, YES Bank, in a letter, said that the company's board is not acting in line with good corporate governance standards and is not a fair representation of the incumbent significant shareholders of the company, being various banks and financial institutions who hold about 45 per cent stake in the firm The board is purportedly acting at the behest of certain minority shareholders holding merely 6 per cent of the shares in the company, the lender added.

Dish TV India Limited is a leading direct-to-home (DTH) Company, providing its services across the country. The company owns recognised and powerful brands like ‘DishTV’, ‘d2h’ and ‘Zing’ under its umbrella. Dish TV, under its three brands, offers a large number of SD and HD channels to cater to the requirements of the customers spread all across the country in addition to providing various Value-Added Services.

The company has a huge distribution network of over 3,100 distributors & around 3,03,000 dealers/ recharge outlets that span across 9,300 towns in the country. The company has also engaged with major digital fintech companies for ease of recharge availability and widespread acceptance of such platforms.