Shares of Reliance Industries Ltd’s (RIL’s) group entities TV18 Broadcast Ltd and Hathway Cable and Datacom Ltd advanced as much as 20% in intra-day trade on Tuesday after the Mukesh Ambani-led conglomerate announced consolidation of all its media and distribution businesses under one umbrella brand ‘Network18’.
RIL said on Monday that TV18 Broadcast, Hathway Cable and Den Networks Ltd will merge into Network18 Media and Investments Ltd, which will be an integrated media and distribution company with a revenue of Rs 8,000 crore.
At 10:37 am, shares of Hathway Cable were locked in 20% upper circuit, quoting at Rs 23.10 apiece, while those of Den Networks Ltd were locked in 10% upper circuit, trading at Rs 59.55. TV 18 Broadcast shares were trading at Rs 28.65, up 14.4%, after hitting the day’s high of Rs 30.05.
Network 18 Media and Investments shares were also locked in an upper circuit of 5%, trading at Rs 30.15. RIL shares, meanwhile, were trading in the red, down 1% at Rs 1,463.50 apiece.
As per the scheme of arrangement announced by the company, for every 100 shares of TV18 Broadcast, shareholders would get 92 shares of Network 18. While for every 100 shares of Hathway Cable and Den Networks, shareholders would get 78 and 191 shares of Network18, respectively.
The consolidation, which comes into effect from 1 February 2020, will scale up Network18 as one of the largest listed players in the media sector with about Rs 8,000 crore in annual revenue, the company said in a statement on Monday.
RIL’s stake in Network18 will reduce from 75% to 64% once the merger is completed. The scheme will also simplify the corporate structure of the group by reducing the number of listed companies.
Disclaimer: News18.com is part of Network18 Media & Investment Limited which is owned by Reliance Industries Limited that also owns Reliance Jio.
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