NYSE-listed alternative assets manager Apollo Global Management has sold over half of its remaining holding in India’s largest direct-to-home TV service operator Dish TV Ltd for Rs 483 crore ($75 million) through an open market transaction on Friday.
The private equity firm, which held around 8 per cent stake in the DTH service provider through its outstanding global depository receipts (GDR) as on March 31, 2015, has sold 46,911,765 equity shares or 4.4 per cent stake in the company at a share price of Rs 103.72.
Part of the stake was picked by Citigroup Global Markets Mauritius Pvt Ltd, which acquired 2.5 per cent stake, shelling out nearly Rs 270 crore (about $42 million).
Following the stake sale, Apollo Global Management’s remaining stake in Noida-headquartered Dish TV is now worth around Rs 400 crore.
Apollo Global had invested $100 million (Rs 465 crore then) in Dish TV in 2009 through a GDR issue. It had converted a part of the GDRs into equity shares, which it sold in April this year for Rs 262.5 crore ($42.2 million) through an open market transaction.
In the previous part exit, it generated a little over 2x in local currency, while in the dollar terms the returns are lower as the Indian currency has depreciated sharply over the last two years.
In the latest tranche sale it generated two and a half times in local currency while in US dollar terms it doubled its investment amount.
Dish TV, part of one of India’s biggest media conglomerate Zee Group, has more than 470 channels and services, including 23 audio channels and over 43 HD channels and services on its platform.
Dish TV India’s scrip closed at Rs 105.60 on BSE, down 3.65 per cent in a strong Mumbai market on Friday.
For Apollo, this is the second exit move from an Indian portfolio. Two years ago it exited from Welspun Maxsteel Ltd.
In India, last year, Apollo invested in power generator Mytrah Energy. It also raised a large special situations investment fund along with ICICI Venture last year.