As their model of subsidising expensive set top boxes to gain customers continue to burn cash in a competitive market, direct-to-home companies are looking at different options to raise money. Mint reported today that Chennai-headquartered Sun Direct, which is making an ambitious bid for a pan-India play, is looking to raise about Rs1,000 crore in debt.
Sun DTH is an 80:20 joint venture between the Kalanidhi Maran family and Astro Group of Malaysia. The Maran family also promotes Sun TV Network, one of India’s largest broadcasters with dominance in regional broadcasting in the South.
It has been reported that Reliance Big DTH, the direct to home service from the Reliance Anil Dhirubhai Ambani group, is in talks to sell a stake to raise funds. The company has repeatedly declined comment.
Market leader Dish TV is raising a total of Rs2,000 crore through a combination of a three-part rights issue and an issue of foreign currency convertible bonds.