The Reliance Industries (RIL) announced on Tuesday that a part of the interest owned by it in the ETV Channels is being divested to TV18 Broadcast Ltd. As per the Memorandum of Understanding (MoU) signed between the two entities, RIL's Infotel will have the preferential access to all content of TV18 for distribution through the 4G Broadband Network.
Both the companies Network 18 and TV18 announced on Tuesday that they will be raising funds through the Rights Issue to repay their existing debt and for the acquisition of ETV Channels.
RIL has set up Independent Media Trust for the benefit of Reliance Industries Ltd. and has agreed to fund the Promoters of Network 18 and TV18 to enable them to subscribe to the proposed Rights Issue.
Stocks of both Network18 and TV18 Broadcast rose on Wednesday over the news. At 12:40 pm IST, the stock of Network 18 was seen up by 13.36% to Rs 52.60 on the Bombay Stock Exchange (BSE) and TV18 Broadcast Ltd was up by 11.87% to Rs 37.70.