The shares of Dish TV India Ltd have been on an uptrend for the last two days. On Monday the shares rallied by approximately 10 percent after the company announced that its Chairman and Director, Jawahar Lal Goel tendered his resignation from the board of the company.
On Tuesday, the shares continued to rise and gained approximately 5.5 per cent till 12.40 pm and were trading at Rs 17.70 levels. In the span of a month, the stock has risen by 55 per cent.
Yes Bank, which holds about 25 per cent stake in Dish TV, has been pushing for a board reconstitution, including the removal of Goel, Narang and other members, citing corporate governance issues.
In June this year, the company held an Extraordinary General Meeting (EGM) where the shareholders had rejected the proposal for reappointment of Goel as managing director and Dua as a whole-time director of the company, post which they had to vacate their office.
In reciprocation last month, Dish Tv had agreed to add a couple of Yes Bank nominees to the board of the company.
Continuing the year-long fight, the company has filed a petition in the Bombay High Court to direct the company to conduct a special shareholder meeting. A division bench of the high court will hear the petition on Tuesday on whether Dish TV should conduct an extraordinary general meeting (EGM).
Dish TV India Ltd is a leading direct-to-home (DTH) company, providing DTH services across segments in the country. They also provide ICICI active, an Interactive banking service giving information about products and services of ICICI Bank. The company has a 31% market share in the segment.
In Q1FY23, the company reported total revenue of Rs 608 crores compared to Rs 730 crores which they earned in the same period a year prior. In the quarter, their net profit stood at Rs 17 crores as against Rs 49 crores in Q1FY22.
The promoters of the company hold a 4.04 per cent stake in the company with an 11.68 per cent stake pledged.
Written by Anoushka Roy
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