Jawahar Goel, promoter and managing director of Dish TV, has supplied a “substantial portion” of his fairness within the agency as safety for the credit score amenities availed of by the Essel group, Subhash Chandra, chairman and group promoter, stated on Thursday.
Chandra’s assertion acquires significance because the group has struggled with debt for some time. Dish TV is a direct-to-home (DTH) firm, and the stake of the promoter household – led by Goel, who’s Chandra’s brother – stands at 7.3 per cent, BSE knowledge reveals.
Nonetheless, this promoter stake has been pledged to lenders, who’ve been revoking shares — in only a 12 months, the stake has fallen from almost 55 per cent to 7.3 per cent. Consequently, pledged shares as a proportion of complete fairness have dropped to three.74 per cent from 51 per cent.
Lenders resembling YES Bank at the moment are among the many key shareholders in Dish TV, holding 24.2 per cent within the agency. Deutsche Financial institution, Housing Growth Finance Company (HDFC), and IndusInd Financial institution maintain 6.2 per cent, 4.7 per cent, and three.8 per cent, respectively.
Chandra stated he was dedicated to releasing the pledge supplied by his brother and that it might not be finished at a low worth. “We want to deny all of the hypothesis pertaining to the shares being launched at a lower cost and bought to third-party buyers at the next worth. That is baseless and incorrect. The (Essel) group has no such intentions by any means,” Chandra stated.
“The group can also be assured of returning the safety cowl again to Jawahar Goel and his household. Goel has solely stepped ahead to supply assist, and has no monetary stress by any means in his private capability,” Chandra added.
Final 12 months, YES Bank had picked up 24.2 per cent in Dish TV after the latter defaulted on a mortgage. For the 9 months ended December 31, 2020, Dish TV’s complete debt stood at Rs 760 crore. The corporate is but to launch numbers for monetary 12 months 2020-21 (FY21). In FY20, Dish TV’s complete debt stood at Rs 1,784 crore.
Final October, YES Bank was barred by the Delhi High Court from promoting its stake in Dish TV after the latter approached the courtroom. The injunction has stayed since then. Dish TV, in a letter to YES Financial institution, had stated it had not pledged shares to it and that being a DTH licence holder, prior approval from the knowledge and broadcasting ministry can be wanted to impact a switch of shares.