Mumbai: Founders of India’s Essel Group said they have raised Rs472.50 crore to help fund expansions of group companies Dish TV India Ltd and Wire and Wireless (India) Ltd.
The founders, led by Chairman Subhash Chandra, have placed 38.4 million shares, or 9%, of newly-listed direct-to-home (DTH) broadcaster Dish TV with institutional investors, according to a statement issued late on 18April.
“With this fund raising, our objective was to provide funds to both Dish TV and WWIL for their expansion plans,” Chandra said in the statement, adding that subsequently, both these companies would raise financing through fresh issuance of equity capital.
Enam Securities handled the placement. Dish TV, India’s top private DTH operator, listed at Rs120 on debut on 18April, closed trade at Rs102.55, after it was spun off from top listed media firm Zee Entertainment Enterprises Ltd.
Dish TV has nearly 2 mn subscribers and expects to add a further 8 mn by 2010, with the average revenue-per-user growing at 10-12% a year. Also cable operator Wire and Wireless and broadcaster Zee News Ltd were spun off earlier.
India is set to become the top pay television market in Asia-Pacific by 2015, and is likely to have 38 mn DTH subscribers by then, according to Media Partners Asia estimates.