Shares of Dish TV rally as promotor group is dislodged from top management in the EGM
In the EGM (Extraordinary General Meeting) of the loss-making company, 78.94% of the votes cast were against the motion to re-appoint Jawahar Goel as managing director. Anil Kumar Dua and Rajagopal Chakravarthi Venkateish also failed to receive the requisite majority in the EGM held on June 24, for reappointment and appointment as Whole Time Director and Independent Director respectively.
Goel represents the promoter group which holds a 6% stake in the DTH operating company. Major stakeholders led by Yes Bank which has a 24.7% stake have been looking to sell their stake in the company. However, the top management positions held by the promoter group had dampened the prospects of stake sale to prospective buyers. The legacy issues had come in the way of Yes Bank’s effort to offload its stake to Bharati Airtel.
Yes bank had been tied in a tussle with the top management and had been trying since last year to replace the board and appoint Akash Suri, Sanjay Nambiar, Vijay Bhatt, Haripriya Padmanabhan, Girish Paranjpe, Narayan Vasudeo Prabhutendulkar, and Arvind Nachaya Mapangada as new independent directors of Dish TV.
Jawahar Goel, despite losing his MD position continues to be a non-executive director on the Dish TV board. The promoter group is likely to move Supreme Court to appeal against the High Court order which led to its dislodgement from top management.
The shares of the DTH operator witnessed a rally of 10.66% in the last trading session and today the stock is up by 6.48%. The stock has been under selling pressure with a monthly share price loss of 20%, while it logged a fresh 52-week low on June 20 at Rs 10.23. At 12.20 pm on June 27, shares of Dish TV hit intraday high and low at Rs 13.45 and Rs 12.40, respectively and were quoting at Rs 12.82.
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