Dish TV puts on hold Rs 750 crore preference issue

Televisionpoint.com Correspondent
Dish TV, Zee Group's Direct-To-Home (DTH) arm, said it has suspended plans to issue up to Rs 750 crore worth of preference shares to its promoters.

"Consequent to recent amendments in regulatory guidelines relating to issue of preference shares, it has been decided to keep in abeyance the decision relating to issue of preference shares," Dish TV informed the Bombay Stock Exchange.

The company's board had earlier approved issue of non-cumulative, non-convertible redeemable preference shares of Rs 100 each up to Rs 750 crore on a private placement basis to the promoter group.

On April 30, the government had announced new norms for preference shares, under which foreign investment through non-convertible shares would be treated as debt or external commercial borrowings.

Dish TV also said the authorization proposed to be sought from its shareholders through the extraordinary general meeting, to be held on May 25, has also been deferred.

Reserve Bank of India had already said foreign investors will not be allowed to purchase additional shares in Dish TV India, on account of FII shareholding reaching 49 per cent limit of the company's paid up capital.

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