India has second largest market for TV after China. As per estimate there are around 284 million household as on March 2016, out of which around 181 million has TV sets which are served through Cable TV around 102 million, Private Direct to Home(DTH) around 58.53 million active subscribers, Internet Television Protocol Service (IPTV) around 0.5 million and others (including government owned DD direct) around 19.97 million. There are around 899 permitted satellite TV channels in India till Dec 2016 and 7 DTH/satellite operators.
Indian broadcasting industry grew to Rs 54,200 crores in 2015-16, registering the growth rate of around 14.10%. Major share comes from subscription revenue which accounts to Rs 36,100 crores and remaining from the advertisements.
Dish TV India Limited (Dish TV)
- Dish TV is world’s third largest and India’s number one DTH service provided with a subscriber base of 15.5 million as on March 2017
- DTH service contribute almost 63% of total revenue whereas Infra support service contributes around 36% of revenue amounting to Rs 1,125.54 crores (gross basis including inter segment revenue) as on March 2017.
- Having pan-India presence.
- As on March 2016, Dish TV is having almost 25% share of Private DTH market.
- Listed on BSE and NSE having a market capitalisation of around Rs 8,996 crores.
Videocon D2H Limited (VD2H)
- Videocon d2h is India’s fastest growing DTH company.
- Since its launch of DTH service in Year 2009, company went pan-India by 2010 and as on March 2017 it has 12.91 million subscribers.
- It is also the First India Media company to be listed on NASDAQ.
- Company having a market cap of USD 1.208 billion (Rs 7,852 Crs approx. @Rs65/$) as on March 2017.
- VD2H is having a market share of around 20%.
Scheme of Amalgamation
Scheme of amalgamation between Videocon D2H Ltd (Transferor Company) with Dish TV India Ltd (Transferee Company) with appointed date which is effective date (i.e. date on which filing of order with ROC) with exchange ratio is fixed at 2.02 equity shares of Rupee 1 each in Dish TV for every 1 Share of Rs 10 each in VD2H.
- Any fractional shares, if 0.5 or more, then 1 share of Dish TV is to be given else no shares.
- ADR holders of VD2H are provided with 2 options to be opted prior to effective date
- Shares of Dish TV as per exchange ratio for number of transferor company shares represented by Such ADRs Or
- GDRs of Dish TV
- Exchange ratio will change subject to following scenarios:
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