(30 April 2007 6:20 pm)

MUMBAI: Dish TV, Zee Group's demerged direct-to-home (DTH) business, will get a capital infusion of up to Rs 7.5 billion with the promoters intending to subscribe to preference shares.

"The board has approved, subject to appropriate approvals, issue of non-cumulative non-convertible redeemable preference shares of Rs 100 each up to Rs 7.5 billion on a private placement basis to promoter group," Dish TV said in a statement.

The promoters had earlier offloaded nine per cent stake in the company to a few institutional investors to raise Rs 4.45 billion. The capital raised would be used to fund the expansion plans of Zee's demerged distribution companies, Dish TV and Wire & Wireless India Ltd (WWIL).

Dish TV plans to pump in Rs 10 billion over two and a half years in a bid to ramp up its subscriber base.

Meanwhile, the board has also approved a related proposal to increase the company's authorised share capital from Rs 730 million to Rs 8.25 billion.

The company will hold an Extra Ordinary General (EGM) of the shareholders on 25 May.