Dish TV may merge subsidiaries with itself

Dish TV is likely to merge its two wholly owned subsidiaries, Agrani Satellite Services and Integrated Subscriber Management Services, with itself.

The move will result in operational efficiencies for Dish TV, India’s largest direct-to-home (DTH) company. “Dish TV is likely to merge its subsidiaries with itself,” market sources said.

When contacted, Dish TV managing director Jawahar Goel declined to comment. The company’s board will meet on Friday to consider a proposal for internal business restructuring between the company and its wholly owned subsidiaries.

According to sources, Agrani Satellite Services has shelved its plans to acquire a stake and invest $64 million in ProtoStar satellite. The plan was to have the Ku-band transponders for Dish TV as it expanded its channel offerings to its DTH subscribers.

Meanwhile, ProtoStar has filed for bankruptcy. The satellite services provider was formed to acquire, launch and operate high-power geostationary satellites to lease capacity to Asian DTH and broadband service providers.

Agrani, which owns a licence to own, operate and launch a satellite, has invested Rs 940 million in the last fiscal.

Integrated Subscriber Management Services, a company that deals with data management services, was initially designed to service other DTH service providers as well. But with Dish TV posting rapid growth and spreading its subscriber base to over seven million, the subscriber management system handles only its parent company’s operations.

Dish TV also holds 51 per cent stake in Agrani Convergence Ltd, a company that is in a dormant stage.

Shares of Dish TV rose 5.35 per cent to close Thursday at Rs 42.30 on the BSE.

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