Dish TV cash comes from promoter

Indiaís DishTV has raised Rs3.1 billion in the first tranche of its rights issue, but most of the cash came from existing major shareholder the Essel Group, according to local reports.

With Dish TVís shares dropping to Rs19 before the rights issue, the price of Rs22 largely kept investors away, even those already holding Dish TV shares.

As a result, Essel Group and associated companiesí stake is reported to have risen to just over 80% from a previous 58%.

Two further tranches are scheduled for later in the year, but these will gather further cash from those subscribing to the first rights issue. These tranches will raise another Rs8.3 billion.

The cash will go towards funding the platformís growth. Dish TV is targeting 8 million subs by the end of its fiscal year 2010 (end-March). At the end of December, Dish TV had 4.72 million subs, with 789,000 added in the quarter. The company has an average subscriber acquisition cost of Rs2,832 and has 48% of the Indian DTH market.