Shares of Dish TV India Ltd. surged after it said Chairman Jawahar Lal Goel will step down from his position at the company’s annual general meeting on Sept. 26.
The announcement pushed Dish TV share prices to Rs 14.34 apiece, compared with Rs 12.05 apiece at close previous day. The stock, after opening at Rs 12.23, hit an intraday high of Rs 14.46 on Thursday.
The move is seen as a win for the private sector lender Yes Bank Ltd., which has been seeking a board overhaul. Yes Bank owns over 24% of the Essel Group-owned DTH company.
“Jawahar Lal Goel, chairman and non-executive director, shall vacate his office at the ensuing AGM on account of having expressed his unwillingness to offer himself for reappointment as a director,” the company said in its exchange filings.
The DTH operator had rejected the proposal to reappoint him in the extraordinary general meeting in June. However, Goel continued as a non-executive director. He has not applied for reappointment to the post ahead of the AGM due later this month.
Yes Bank and the Goel-led promoter family are engaged in a legal battle over board representation on Dish TV. The two parties are at loggerheads over a Rs 1,000 crore right issues by the group firm. Yes Bank is opposed to this rights issue as it suspects it would dilute the majority shareholding of the bank in Dish TV.
Last year, Yes Bank had sought to remove four directors from the board of Dish TV besides Jawahar Goel. However, the request to call EGM was rejected by the board of the company.
At the AGM held on Dec. 30, 2021, shareholders of Dish TV had rejected all three proposals, including the adoption of financial statements and reappointment of Ashok Mathai Kurien as director.