Videocon shares drop on reports of sale of DTH business

Shares of Videocon Industries dropped following reports that the company planned to sell its DTH business to a rival company. Shares of Videocon Industries were down 1% at Rs 174.75 on the National Stock Exchange.

The Financial Express quoted a person with direct knowledge of the development, "The idea is to build scale with solid subscribers, but with a lower stake."

Videocon competes with the likes of Airtel Digital, Reliance Digital , Dish TV and Sun TV in the direct to home space. Over the years the business has become extremely competitive though the market too has expanded. Guidelines suggesting compulsory switch by consumers to the digital space has enabled the market to grow.

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