As Chairman Jawahar Goel announces his departure, Dish TV stock zooms 20%

The stock closed trading at Rs14.24 per share, up 19% from the previous day's finish on the BSE, after reaching an intraday high of Rs14.46 per share.

September 02, 2022 7:32 IST | India Infoline News Service

Dish TV, a direct-to-consumer firm controlled by the Essel group, saw a 20% increase in shares on Thursday following the announcement that chairman Jawahar Goel will not seek re-election to the board.

The stock closed at Rs14.24 per share, up 19% from the previous day's finish, after reaching an intraday high of Rs14.46 per share on the BSE. Dish TV's market capitalization at closing time was Rs2,640.36 crore, with 10 million shares having been traded at the Dish TV counter on the BSE.

Goel will resign from the board at the business's annual general meeting on September 26, the company announced in a stock market statement on Tuesday. It further stated that independent director Bhagwan Das Narang will step down since his tenure had come to an end.

In order to address corporate governance concerns, Yes Bank, which owns around a 25% interest in Dish TV, has been pushing for a board reconstitution that would remove Goel, Narang, and other board members.

Dish TV approved the appointment of two Yes Bank nominees to its board of directors earlier this month, and on August 30 it continued to evaluate a third candidate from the lending institution. These people included Haripriya Padmanabhan, Arvindnachya Chandranachya, and Girish Paranjpe.

The recent development has investors optimistic that the conflict between the promoters and Yes Bank will eventually be addressed, according to Shriram Subramanian, managing director of Chennai-based proxy advice company InGovern.

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