dish TV announcement

rinku4142

Active Member
#1
what does it mean?
Dish TV - Updates on Rights Issue
November 10, 2008


With reference to the earlier announcement dated October 03, 2008 regarding Rights Issue, Dish TV India Ltd has now informed that, subject to necessary approvals, if any, the Board of Directors of the Company vide its resolution passed by circulation on November 10, 2008, have approved the number and structure of calls to be made for the Companys forthcoming issue of shares on Rights basis,

- Rs 6/- of the Issue price of Rs 22/- on Application.

- Rs 8/- of the Issue price of Rs 22/- will become payable at the option of the Company after 3 months but within 9 months from the date of Allotment.

- Rs 8/- of the Issue price of Rs 22/- will become payable at the option of the Company after 9 months but within 18 months from the date of Allotment.
 
#2
this means, Dishtv will be giving shares to its existing share holders @ 22 rupees per share.

The existing share holders (who already has delivery) can buy extra dishtv shares @ 22rs per share and they need to pay

1. First payment is 6 rs with application form. And if your application qualifies and you get "Rights Issue" Shares. After the share allotment, you owe 16 rs (22-6(advance)=16rs)
2. Second payment is 8rs within 3-9months of allotment of shares because you got shares @ 6 you need to pay 22-6 = 16rs. first installment is 8rs.
3. Third payment is 8rs again, which is payable from 9-18 month from the date of issue of your "shares" by rights issue.

6+8+8 = 22 rs in 18months is what dishtv is collecting for the rights issue.

on a personal note, do not buy rights issue shares, and shares for dividend as you'll lose the money in bear market. buying rights issue and shares for dividend is good in bull markets.
 

vasa1

Active Member
#3
....
on a personal note, do not buy rights issue shares, and shares for dividend as you'll lose the money in bear market. buying rights issue and shares for dividend is good in bull markets.
I also suspect that these "rights" shares will not be able to be sold until they are fully paid for.

If that is correct, then that's the promoters' way of ensuring that at least someone retains the shares :).
 

Similar threads