Skip to content

Reliance To Merge TV18, Hathway And Den Networks With Network18

We provide instant Stock Market updates on our Telegram Channel : Follow Now

Shares of 4 Reliance Industries owned businesses jumped up to 20% in Tuesday’s trade after the promoter decided to merge all media and distribution businesses under one umbrella brand ‘Network18’.

Reliance Industries

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

Following the announcement, shares of TV18 Broadcast jumped 19.68% to hit a high of Rs 30.10. Hathway Cable & Datacom hit 20% upper circuit at Rs 23.10. Den Network traded 7.76% higher at Rs 58.30.Network18 Media also rose 4.89% to Rs 30.05.

Investors will get 92 shares of Network18 for every 100 shares of TV18 Broadcast, 78 shares of Network18 for every 100 shares of Hathway Cable, 191 shares of Network18 for every 100 shares of Den Networks.

Reliance’s holding in Network18 will be reduced to 64% from 75%. Shares of Reliance Industries fell 0.96% to Rs 1464.20.

Read Also: Bharti Airtel Pays Rs 10,000cr To Government Towards AGR Dues

“This is the 4th step executed by Reliance Industries to reorganize the various assets and create better shareholder value via a leaner listed universe and providing an independent value to each business segment. We see this as a +ve event for the Network18 and Reliance Industries as this will provide a better value to the segment as it provides better cash flow management and better cross-selling of services,” said Sameer Kalra of Target Investing.

Kalra noted that the merged entity will be net debt-free and can allocate free cash flow to the businesses as and when required. That might also bring the company closer to bringing a Strategic Investor or Private Equity to provide value unlocking to Network 18, he said.

Cover Image Source: Blomberg Quint


Above Stocks Team

Share this post on social

Leave a Reply

Your email address will not be published. Required fields are marked *

About us

Above Stocks is your trusted source for comprehensive stock market insights, news, and expert recommendations. Empowering investors with knowledge and confidence for financial success.

Disclaimer: Stock Market investments are subject to market risks. All the information provided on our Portal is for education purposes only. Kindly consult your Financial Advisor before taking any decision.