Shares of DTH operators in focus; Dish TV, Hathway Cable up over 3%

Shares of the companies engaged in Direct to Home (DTH) television operating business were in focus, surged by up to 7% in otherwise subdued market after the global private equity firm Warburg Pincus planning to  acquire up to 20% stake in Bharti Airtel’s DTH arm Bharti Telemedia for $350 million.

Hathway Cable & Datacom have rallied 7% to Rs 43 on the BSE in early morning trade. Dish TV India was up 4% to Rs 83.15, followed by Den Networks (up 3% at Rs 108), Sun TV Network (2% at Rs 908) and Siti Networks (up 2% at Rs 26.50).

 

Bharti Airtel, too, was up nearly 2% at Rs 534, as compared to a marginal 0.03% gain in the S&P BSE Sensex at 09:36 AM;

Of the 20% to be acquired by Warburg, 15% will be sold by Bharti Airtel and the balance by another Bharti entity which holds a 5% stake. The proceeds will be used to fund growth plans as the company looks to strengthen its hold in the country's DTH market, which is in the midst of consolidation.

Vishal Mahadevia, Managing Director and Co-Head, Warburg Pincus India, said, “The Indian Digital TV market is expanding rapidly and we believe that Airtel DTH is well positioned to capitalize on incremental growth and new TV penetration in Tier 3 and Tier 4 towns and rural areas”.