Media stocks such as Hathway Cable & Datacom Limited, TV18 Broadcast, DEN Networks were trading higher in the opening trade on BSE after the Mukesh Ambani’s owned RIL announced a consolidation of its media and distribution businesses spread across multiple entities into Network18. Hathway Cable & Datacom shares hit an upper circuit of 20% to Rs 23.10 apiece on BSE. Among other stocks, DEN Networks shares climbed 10 per cent to Rs 59.50, Network18 Media & Investments surged 4.89 per cent to Rs 30.05 and TV18 Broadcast shares jumped 19.68 per cent to Rs 30.10 apiece. While RIL shares were trading 0.72 per cent lower at 1467.80 apiece.
The Nifty Media index was the only gainer among the sectoral indices. It was trading around 1.22 per cent higher to 1,883 points led by gains in TV18 Broadcast, Balaji Telefilms, Network18 and ZEEL. "Under the scheme of the arrangement, TV18 Broadcast, Hathway Cable & Datacom and Den Networks will merge into Network18 Media & Investments. The appointed date for the merger shall be February 1, 2020," TV18 Broadcast said in a BSE filing.
According to the scheme, for every 100 shares of TV18, Hathway and Den, their shareholders would get 92, 78 and 191 shares, respectively, of Network18. Besides, the consolidation of cable businesses of Den and Hathway in one entity will leverage "the combined strength of the 27, 000 local cable operators partners who act as the touchpoints to 15 million households in India; delivering localized, people-friendly and ultra-fast customer services," TV18 Broadcast said in a statement.
Meanwhile the S&P BSE Sensex was trading 238.72 points or 0.58 per cent lower at 40,817 points while the broader Nifty 50 index was ruling below the crucial 12,000-mark, at 11,968, down 78 points or 0.64 per cent.