Den Networks, Hathway Cable rally as government allows 100% FDI in DTH

Den Networks rallied 13% to Rs 113, while Hathway Cable surged 10% to Rs 45.10 and Dish TV up 3% at Rs 101 on BSE.

Shares of direct-to-home (DTH) companies such as Den Networks, Hathway Cable & Datacom and Dish TV have rallied by up to 13% after the government increased foreign direct investment (FDI) limits in several segments of the broadcasting industry and even completely removing the barriers in some verticals on Tuesday.

In the media space, direct-to-home (DTH) companies and cable operator companies can now draw 100% FDI. Earlier, the FDI limit for the cable and DTH sector was 74% - 49% through the direct route and with government approval beyond that.

FDI limit for uplinking of news and current affairs for television channels has been increased from 26% cent to 49%, providing an opportunity for many cash-strapped news networks to raise funds.

Among individual stocks, Den Networks has rallied 13% to Rs 113 on the BSE. Hathway Cable & Datacom has surged 10% to Rs 45.10 and Dish TV up 3% at Rs 101.