Shares in Dish TV India advanced near 10% during the mid-noon session, on the NSE on Monday after the company emerged with a clarification on CARE rating’s downgrade. Meantime, benchmark Nifty stood at 11973.85, up 52 points and the Sensex at 40613.94, up by 168 points.
Dish TV’s rating on Bank facilitates was revised by CARE ratings, from CARE A4-pus to CARE-D. As per CARE, this revision of the rating takes into account default in payment of short-term loan due on November 28, 2019.
However, the DTH service provider stated that the default in debt repayment was on account of a temporary cash inadequacy due to peak payment commitments to suppliers.
The company reiterated its aim to repay all its debts as and when they become due in the future. Also, the Company remained optimistic about improvement in its liquidity situation going forward. The Company is also in touch with its banking partners and expected to get alternate credit facilities to finance its regular Capex in order to normalize the utilization of its cash flow on debt repayment. For Free stock trading tips and sharemarket updates tips visit our website.
With response to this positive development, the stock of Dish TV India opened at Rs.12.55-per share and later touched an intraday high of 14.35-per share, or 14% and is currently trading at Rs.13.85-per share, up by 10.36% at 1.30-pm.