Direct to home service provider Dish TV India shares were locked in upper circuit on September 14, giving a massive return to investors in the month of September, amid the notice issued by Yes Bank, the shareholder in the company, to rejig board.
The stock surged 10 percent to freeze at Rs 21.31 on the BSE at 12:30 hours IST, taking the total September month's gains to 69 percent. It traded with a market capitalisation of Rs 3,923.71 crore and combined volume of 1.61 crore equity shares on the BSE & NSE.
On September 13, The Hindustan Tiimes has bought 2 crore equity shares of Dish TV India (or 1.15 percent of fully paid up equity shares held) at a price of Rs 19.22 per equity share on the NSE, the bulk deals data showed.
Earlier this month, shareholder Yes Bank issued a notice to the company, to remove five directors including Ashok Mathai Kurien, the founder-promoter & director of Dish TV.
Yes Bank is a shareholder of the company, holding 47,19,13,990 equity shares representing 25.63 percent of the paid-up equity share capital of Dish TV.
The bank, on September 4 in its special notice, asked the company to consider and pass the removal of Rashmi Aggarwal, Bhagwan Das Narang, Shankar Agganval, Jawahar Lal Goel, and Ashok Mathai Kurien as directors, at the 33rd Annual General Meeting of the company that scheduled to be held on September 27, 2021.
Jawahar Lal Goel is currently serving as the Managing Director and Chairperson of Dish TV.
"Company received a special notice from Yes Bank to pass: (i) a Special Resolution for removal of Rashmi Aggarwal (independent director) and Bhagwan Das Narang (independent director); and (ii) an Ordinary Resolution for removal of Shankar Aggarwal (independent director), Jawahar Lal Goel, and Ashok Kurien (non-executive non-independent director) from the Board of Directors of the company," said Dish TV.
On September 13, Ashok Kurien resigned from the position of Non-Executive Non-Independent Directors of Zee Entertainment Enterprises with immediate effect. Zee Entertainment Enterprises shares surged 32.68 percent to Rs 247.85 on the BSE at the time of publishing this copy after shareholders Invesco Developing Markets Fund and OFI Global China Fund LLC, together holding 17.88 percent stake in Zee, have demanded the removal of Punit Goenka, Manish Chokhani and Ashok Kurien as directors of the firm.
While citing reason for a demand to remove directors, Yes Bank said, "Dish TV Board is not acting in line with good corporate governance standards and is not a fair representation of the incumbent significant shareholders of the company being various banks and financial institutions holding about around 45 percent shareholding in the company. The Board is purportedly acting at the behest of certain minority shareholders holding merely around 6 percent of the shares in the company."
The bank further said the Board has completely side-lined the multiple requests of the bank to reconstitute the Board, by appointment of the nominee directors; and the Board has acted in complete haste and taken arbitrary decisions to proceed with the rights issue process.
In the same notice, Yes Bank has proposed the seven candidates for appointment as directors on board of directors of Dish TV. "...propose the appointment of Akash Suri as Non-Executive Non-Independent Director, Sanjay Nambiar as Non-Executive Non-independent Director, Vijay Bhatt as Independent Director, Haripriya Padmanabhan as Independent Director, Girish Paranjpe as Independent Director, Narayan Vasudeo Prabhutendulkar as Independent Director, and Arvind Nachaya as Independent Director."