Sun TV Network has soared 5.5% at Rs 296 on reports that the company has proposed to spend around Rs 200 crore as capital expenditure (capex) for the current financial year, which include upgrading equipment and on programming operations.
Besides, the company has lined up Rs 250-260 crore to acquire movies for distribution, through its movie distribution arm, Sun Pictures, the reports suggests.
According to research firm Motilal Oswal, the subscription agreement with the Tamil Nadu state-owned Arasu cable, which management hopes to conclude soon, should lead to an improvement in cable revenue as well as operating environment in Tamil Nadu for the company.
The broadcasting and cable TV operator is outperforming the market by surging 34% in past three weeks, compared to around 7% rise in benchmark index Sensex.
Today, the stock opened at Rs 282 and hit a high of Rs 301 on the National Stock Exchange. A combined 1.24 million shares have changed hands on the counter till noon deals on both the exchanges.