Dish TV, Country's no 1 DTH company, has informed that its founders have sold 5.8% stake in the company to raise Rs 270 crore.

Reports suggest that the shares were sold at Rs 49 per share.

According to the company, the raised amount will be used for getting hold of more customers for the next couple of years. DTH companies have to provide discounted packages as the competition is high after entry of Reliance, Sun Direct and Airtel.

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.

In May, the company had approved raising $200 million by foreign currency convertible bonds.

At 1:18 pm, shares in Dish TV were down 14% at Rs 46.20 in a weak Mumbai market.