Network 18 Media corrects on profit booking

Network 18 Media & Investments fell 4.83% to Rs 52.20 at 15:26 IST on BSE on profit booking after the stock surged 43.77% in the preceding five trading sessions to Rs 54.85 on 2 June 2014, from a recent low of Rs 38.15 on 26 May 2014.

Meanwhile, the BSE Sensex was up 169.58 points, or 0.69%, to 24,854.43.

On BSE, so far 8.11 lakh shares were traded in the counter, compared with an average volume of 2.33 lakh shares in the past one quarter.

The stock hit a high of Rs 55 and a low of Rs 51 so far during the day. The stock hit a 52-week high of Rs 58.70 on 2 June 2014. The stock hit a record low of Rs 25.10 on 3 September 2013.

The stock had outperformed the market over the past one month till 2 June 2014, rising 63.24% compared with 10.18% rise in the Sensex. The scrip had also outperformed the market in past one quarter, rising 78.37% as against Sensex's 16.88% rise.

The mid-cap company has an equity capital of Rs 523.33 crore. Face value per share is Rs 5.

The recent rally in shares of Network 18 Media & Investments was triggered by Reliance Industries (RIL) announcing acquisition of Network18 Group last week.

On 29 May 2014, the board of RIL approved funding of upto Rs 4000 crore to Independent Media Trust (IMT), of which RIL is the sole beneficiary, for acquisition of control in Network 18 Media & Investments (NW18) including its subsidiary TV18 Broadcast (TV18) and the open offers to be made consequent to the acquisition.

NW18 is the owner of a suite of premier digital internet properties, e-commerce businesses and differentiated broadcast content. IMT would use the funds to acquire control over NW18 and TV18 resulting in ownership of about 78% in NW18 and 9% in TV18 and to acquire shares tendered in the open offers. Further, IMT made open offers to public shareholders for acquisition of equity shares of NW18, TV18 and Infomedia Press.

IMT made open offers to public shareholders of NW18 for acquiring up to 22.99 crore equity shares of NW18 at an offer price of Rs 41.04 per share.

This acquisition will differentiate RIL's 4G business by providing a unique amalgamation at the intersect of telecom, web and digital commerce via a suite of premier digital properties. This suite includes In.com, IBNLive.com, Moneycontrol.com, Firstpost.com, Cricketnext.in, Homeshop18.com, Bookmyshow.com; the broadcast channels include Colors, CNN IBN, CNBC TV18, IBN7, CNBC Awaaz, the company said.

On a consolidated basis, Network 18 Media & Investments reported net loss of Rs 4.12 crore in Q4 March 2014 compared with net profit of Rs 12.42 crore in Q4 March 2013. Total income rose 4.4% to Rs 762.90 crore in Q4 March 2014 over Q4 March 2013.

The Network18 Group is a media and entertainment company with interests in television, internet, films, e-commerce, magazines, mobile content and allied businesses.

Powered by Capital Market - Live News