Dish TV to raise $200 million through FCCB

dish tvDish TV, India's largest direct-to-home service provider by customers, has decided to raise $200 million by way of foreign currency convertible bonds (FCCB).

The company already received nod from its board of directors for raising long-term funds by way of issuance of FCCBs for an amount not exceeding $200 million.

The latest announcement is in addition to Rs 1100 crore, which the firm is raising in a three-part rights issue. So, this way the company will raise about Rs 2,000 crore in all.

A company official informed that the raised money will be utilized for customer acquisition for the next two years.

It should be noted that, DTH companies subsidize the cost of set top boxes (STBs) so that they can acquire more customers and enjoy economies of scale.

Apart from Dish TV, TataSky, Airtel, Reliance Communications and Sun DTH are the other players in the segment.

Shares of Dish TV were trading at Rs 49.60 on BSE, marginally up against its previous close.