Buzzing Today: Shares of Dish TV rally after chairman Jawahar Goel tenders his resignation

Owing to corporate governance issues, Dish TV India’s largest shareholder Yes Bank has been pushing for a board overhaul, including the removal of Jawahar Goel, Bhagwan Das Narang and other members. 

The shares of Dish TV India Ltd are buzzing on the bourses today. As of 2.10 pm, the shares of Dish TV India are trading at Rs 17.70 apiece, higher by 5.55% over the previous close. Meanwhile, the frontline index S&P BSE Sensex is up by 1.48%. 

The rally in the share price of Dish TV India comes after the company's Director and Chairman - Jawahar Lal Goel resigned from his position. 

The backdrop of this development 

Private lender Yes Bank Ltd, the largest shareholder in Dish TV India, was locked in a legal tussle over board representation in Dish TV. The bank holds a 25% stake in Dish TV India, whereas the promoter family- Goel, own only 6% of the company. 

Owing to corporate governance issues, the bank has been pushing for a board overhaul, including the removal of Jawahar Goel, Bhagwan Das Narang and other members. 

In June 2022, the company’s shareholders in an Extraordinary General Meeting (EGM) rejected the proposal for the reappointment of Goel as managing director and Anil Dua as a whole-time director of the company. Owing to this, both had to vacate their office. 

Looking at the company’s performance, in FY22, on a consolidated basis, Dish TV India’s topline declined 13.4% YoY to Rs 2826 crore. During the year, the company’s net loss deepened to Rs 1867 crore from a loss of Rs 1189 crore in FY21. 

The company reported the resignation on Monday. The markets have reacted positively to this news. Even in the pre-opening session today, the shares of Dish TV India were trading higher by nearly 7%. With this surge, the company was one of the top gainers on the bourses. 

Today, the scrip opened at Rs 17.90 and has touched a high and low of Rs 18.44 and Rs 17.54, respectively. So far 25,96,624 shares have been traded on the bourses. The stock has a 52-week high & low of Rs 22.95 and Rs 10.23, respectively on BSE.