NEW DELHI: Dish TV shares fell as much as 10% on Tuesday before closing the session about 7% lower at Rs 15.89 apiece on the BSE, as shareholders of the broadcast satellite service provider rejected 4 of the 6 resolutions at the annual general meeting (AGM).
Over the last 3 days, Dish TV shares have lost 14% and when compared to its all-time high of Rs 130.55 (in 2007), the scrip has lost nearly 9/10th of its value. Dish TV shareholders rejected the audited statements for the last 2 fiscals (FY21 and FY22), appointments of a new auditor and an independent director, the firm said in a regulatory filing on Monday. The strength of the Board has come down to 2 directors, below the minimum required strength of 3 directors as prescribed under the applicable provisions of the Companies Act, 2013. The appointment of new auditor SN Dhawan & Co. and Dish TV’s non-executive independent director Rakesh Mohan were stalled at the AGM.
The development comes on the back of the ongoing dispute between Yes Bank, Dish TV’s largest shareholder (with 25% stake), and the Goel family, promoters of Dish TV, over the reconstitution of the firm’s Board among other things. Jawahar Lal Goel had stepped down as Chairman of Dish TV from the company’s Board last week. The promoter family holds only 4.04% stake.
“As the largest shareholder, it looks like Yes Bank has voted against some of the proposals,” said Shriram Subramanian, MD of InGovern Research Services, a corporate governance advisory firm. “Now, the ball is in Yes Bank’s court. It should take it up to the next stage of appointing new directors and provide direction to the company,” He added.
A senior analyst at a brokerage said mismanagement by the promoter family and poor business steps has let down shareholders, as stock prices have plunged from Rs 100 plus level to Rs 15 in last 5 years. “Dish TV needs a professional team and a big turnaround strategy as current challenges, coming from OTT players, are far more aggressive than ever before.”
DishTV in a mess
Dish TV shareholders rejected audited statements for the last two fiscals (FY21 and FY22), appointments of a new auditor and an independent director