Media stocks in demand; Entertainment Network surges 18 pc

Shares of companies engaged in broadcasting and cable TV business rallied by up to 18 per cent today as a proposal for auctioning for phase III of FM channels was approved by the government.
Entertainment Network (India) zoomed 18.04 per cent and TV18 Broadcast surged 8.64 per cent on the BSE. Entertainment Network India owns Radio Mirchi.
Among others, TV Today Network gained 5.27 per cent and Zee Entertainment Enterprises rose by 4.18 per cent.
The proposal for auctioning for phase III of FM channels was given a go ahead by the government today, a process that could add an estimated revenue of over Rs 550 crore to the exchequer.

The Union Cabinet, chaired by Prime Minister Narendra Modi also approved migration (renewal) of private FM Radio licenses from Phase-II to Phase-III in 69 existing cities for 135 channels on payment of migration fee according to TRAI recommendations.
As of now, with the implementation of two phases of private FM Radio -- Phase I (1999-2000) and Phase II (2005-06) -- there are 243 private FM channels in operation in 86 cities of the country, spanning 26 states and three Union Territories.