This is not the first time Yes Bank is acquiring stakes in non-banking companies when they failed to repay the loan. Dish TV is the fifth firm in last one year that the private lender has invoked pledge against shares of a company that has availed the loan and could not pay the dues.
Sical Logistics, a promoter group entity of Coffee Day gave up about 10.25% stakes to Yes Bank as it acquired six million shares in January this year. Sical Connect Ltd had defaulted the repayment of loan it took from the private bank by pledging the stakes of Sical Logistics. The bank also acquired 29.97% stakes in Rosa Power Supply Ltd, a completely owned subsidiary of Reliance Power Ltd in January this year.
Yes Bank said in a statement, “Shares have been acquired pursuant to invocation of pledge of the shares subsequent to default/breach of terms of credit facilities sanctioned by Yes Bank to Essel Business Excellence Services Ltd, Essel Corporate Resources Private Ltd, Living Entertainment Enterprises Private Ltd, Last Mile Online Ltd, Pan India Network Infravest Ltd, RPW Projects Private Ltd, Mumbai WTR Private Ltd & Pan India Infraprojects Private Ltd.”
Dish TV shares have lost 67% of its value since the beginning of this year which is now close to Rs 4.28 per piece. The DTH firm was launched in 2003 with the aim to provide dish in rural areas where the basic cable TV was not reachable. Today, the company has 23.94 million subscribers and is a tough competition to Tata Sky.
The data from TRAI shows that Dish TV with sets has the highest reach in the country with 40% of total DTH TV sets followed by Tata Sky and Airtel TV at 25% and 22% respectively.