Dish TV stock jumps 20% as chairman Jawahar Goel announces exit
The shares of Dish TV, the Essel group-owned direct-to-home company, rose 20 per cent on Thursday, after the company said its chairman Jawahar Goel would not seek a reappointment to the board.
The stock touched an intra-day high of Rs 14.46 apiece on the BSE, and closes at Rs 14.24 a share, up 19 per cent over the previous day’s close. 10 million shares exchanged hands at the Dish TV counter on the BSE, with the company’s market capitalisation, at the time of close, standing at Rs 2,640.36 crore.
The company’s annual general meeting is scheduled for September 26, where Goel will step down from the board, the company had said in a stock market notification on Tuesday. Independent director Bhagwan Das Narang would also vacate office as his term has expired, it said.
Yes Bank, which holds about 25 per cent stake in Dish TV, has been pushing for a board reconstitution, including the removal of Goel, Narang and other members, citing corporate governance issues.
Last month, Dish TV had agreed to add a couple of Yes Bank nominees to its board and on August 30,. further considered one more nominee from the private lender. These included Girish Paranjpe, Arvindnachya Chandranachya and Haripriya Padmanabhan.
“Investors are hoping that the dispute between the promoters and Yes Bank finally gets resolved with the latest development,” Shriram Subramanian, managing director, InGovern, a Chennai-based proxy advisory firm, said.
“With a new board in place, Yes Bank could push for a sale of the company to a buyer,” he said.
In June, Goel had resigned as the managing director after shareholders rejected a proposal for his re-appointment.