The Ministry of Information and Broadcasting (MIB) has approved the merger of DishTV (DITV) and Videocon D2H (VD2H), paving the way for their combined operations. We expect the combined entity to derive synergies of INR2.4b in FY19 and INR4b inFY20. Also refer our note dated September 25, 2017 for details on merger synergies. DI TV's ARPU has remained sluggish in the last few quarters partly due to high competitive intensity. We expect gradual improvement in ARPU, with the effects of demonetization waning, HD contribution rising, LCOs becoming increasingly tax compliant and competitive intensity reducing. The stock is trading at an EV of 6x FY19E and 4.6x FY20E EBITDA if we factor merger synergies of INR2.4b in FY19 and INR4b in FY20 ( 50 % below management's estimates). We remain positive on DITV, with a TP of INR106 (8x FY19E EBITDA ofINR26.5b including merger synergies of INR2.4b).