MUMBAI: Dish TV India has called on its shareholders to participate in a postal ballot to decide a few key decisions which will help it rev up its business going forward. The ballot that will take place between 8 August and 6 September firstly seeks permission from its shareholders to authorise the board of directors (BOD) to borrow up to Rs 3000 crore over and above the company's paid up share capital and free reserves.
Secondly, it seeks to authorise the BOD to create a charge/mortgage on its assets that will aid the borrowings. However, it says it will take care to keep the loan amounts well within the maximum borrowing limits, including all taxes. In an earlier meeting, the BOD had approved of the plan and it is now seeking Dish TV shareholders' nod for the same.
Additionally, it has sought their go-ahead to allow it to invite companies and individuals to subscribe to its non-convertible debentures (NCDs) through the private placement route. If the resolution is passed - which is quite likely - it will allow Dish TV India to make offers within one year seeking subscription for secured and/or unsecured, redeemable NCDs in one or more series/tranches/currencies to persons such as FIIs, mutual funds, banks, body corporate, persons etc. These can be either Indian or foreign and the condition is that no single tranche will be more than Rs 500 crore and will be well within the boundary of the borrowing limit.
Dish TV has informed shareholders that the BOD could take recourse to various instruments such as equity, project loans, corporate loans, bank and financial institutional loans or debentures to raise funds going forward. A right mix of all of these would help it get funding at an optimum cost. Subject to member approval, the board says it is evaluating the process of raising money through non convertible debentures on private placement basis.
The last resolution - if pased - will authorise the BOD to make investments/give any loan or guarantee /provide security to any of Dish TV India's subsidiary/associate companies to the tune of Rs 500 crore. This could be done from time to time and in tranches. The investments, guarantees and securities are aimed to bring about optimum utilisation of the company's funds and achieve long term strategic and business objectives, the Dish TV postal ballot notice to the Bombay stock exchange says.
The aggregate of the investments that it will make along with the securities that it may provide to a loan taken by a subsidiary/associate company, guarantees and the proposed investments can be more than 60 per cent of the paid up share capital and free reserves and securities premium account or 100 per cent of its free reserves and securities premium account, whichever may be higher.
“Your company has embarked upon a growth path and is constantly reviewing opportunities for expansion of its business operations,” says a note to Dish TV shareholders.