Essel Group raises $105 mn from placement
Essel Group raises 4.45 billion rupees to help fund expansions of group companies Dish TV India Ltd and Wire and Wireless Ltd.Updated: Apr 19, 2007, 10:02 IST
Founders of Essel Group said they have raised 4.45 billion rupees ($105 million) to help fund expansions of group companies Dish TV India Ltd and Wire and Wireless Ltd.
The founders, led by Chairman Subhash Chandra, have placed 38.4 million shares, or 9 per cent, of newly-listed direct-to-home broadcaster Dish TV with institutional investors, according to a statement issued late on Wednesday.
"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.
"Subsequently, both these companies would raise financing through fresh issuance of equity capital," he said. Enam Securities handled the placement, the statement said.
Dish TV, India's top private DTH operator, listed at 120 rupees on debut on Wednesday, closing trade at 102.55 rupees, after it was spun off from top listed media firm Zee Entertainment Enterprises Ltd.
Dish TV has nearly 2 million subscribers and expects to add a further 8 million by 2010, with the average revenue-per-user growing at 10-12 per cent a year, Chandra said.
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 million DTH subscribers by then, according to Media Partners Asia estimates.