Dish TV plans GDR and FCCB; gets FIPB nod to raise $200 mn

MUMBAI: Market leader Dish TV India is planning a Global Depositary Receipt (GDR) issue as it pursues to raise up to $200 million to fund its expansion programme, a source in the company says.

Reversing its earlier plan, the Essel Group company has decided to have a mix of GDR and FCCBs (Foreign Currency Convertible Bond). "We will simultaneously have the FCCB and GDR issue. The size is yet to be decided and will depend on the market situation then," the source adds.


Dish TV had made a revised proposal to the FIPB (Foreign Investment Promotion Board) seeking to raise up to $200 million via GDR and FCCBs. "In our fresh application, we sought changes in both the amount and the instrument for raising money. By going in for a GDR, we will be able to raise equity capital as well. In the mix, the FCCB will be the debt component," the source says.

Dish TV had earlier got the FIPB nod to raise $150 million through FCCBs.

"We have now got the FIPB clearance to raise up to $200 million and through GDR and FCCBs. With this, we will complete our funding requirement before we operationally break even," the source adds.Dish TV has already received Rs 7.25 billion out of the Rs 11.4 billion rights issue in three tranches. The promoters of Dish TV had offloaded 5.8 per cent stake to raise Rs 2.7 billion. The shares were sold in the open market at Rs 49 per share.
"The promoters currently hold 73.5 per cent stake. With the GDR issue, this will be diluted by around 10 per cent. But this will depend on the price and size of the issue," the source avers.

Dish TV has mopped up 5.9 million subscribers and is targeting a revenue of Rs 12.5 billion for the fiscal ended 31 March 2010, a jump of 70 per cent from the year-ago period.

Shares of Dish TV closed Wednesday at Rs 44, up marginally by 0.11 per cent from its previous close on the BSE.

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