Dish TV suffers as Videocon D2h deal faces delays

The stock of Dish TV tanked on Friday as market participants exited their positions in the stock following reports that the proposed deal with Videocon D2h faces uncertainties. The stock was down by nearly 7 per cent at Rs. 78.10 per share, down by Rs. 5.85 or 6.97 per cent. 

Given the insolvency proceedings against the subsidiaries of Videocon Group, Dish TV is having to relook at the deal and evaluate the impact of the same on the transaction. The company has asked its advisors to evaluate the transaction and provide a report in 60 days. 

Earlier in December, the Information and Broadcasting (I&B) Ministry had approved the merger of Dish TV with Videocon d2h, the Direct-to-home (DTH) arm of Videocon Industries. In terms of market share, Dish TV is the market leader with 24 per cent share in the DTH entertainment business, with Tata Sky and Videocon d2h holding 23 and 21 per cent market share, respectively. 

Videocon owes more than Rs. 29,000 crore to several banks and was referred to the National Company Law Tribunal (NCLT) by SBI for a loan default of Rs. 3,900 crore.