RIL drops but group entities surge on consolidation move

Reliance Industries shares closed lower by 0.83 per cent on Tuesday after the company announced consolidation of its media and distribution businesses under flagship 'Network18'.

RIL counter closed at Rs 1,466.10.

However, shares of the three group entities namely Hathway Cable & Datacom, Den Networks and TV18 Broadcast -- which have been merged into Network18 posted smart gains.

Network18 Media & Investments hit the upper circuit, gaining 4.89 per cent to end at Rs 30.05 on BSE.

Hathway Cable & Datacom spurted by 20 per cent to hit upper circuit at Rs 23.10 on BSE. Den Networks stock also touched the upper price band after gaining 9.98 per cent to Rs 59.50.

TV18 Broadcast scrip settled higher by 14.71 per cent at Rs 28.85.

Under the scheme of arrangement, TV18 Broadcast, Hathway Cable & Datacom and Den Networks will merge into Network18 Media & Investments, which will be an integrated media and distribution company with a revenue of Rs 8,000 crore.

According to the scheme, for every 100 shares of TV18, Hathway and Den, their shareholders would get 92, 78 and 191 shares, respectively, of Network18.