Shares of the Jagran Prakashan rose on Wednesday after the company informed BSE that the Board of Directors of the Company, approved the entry of the Company into the radio industry via acquisition of Music Broadcast Private Limited (MBPL).
Jagran Prakashan's entry into radio media segment, will increase its shares of advertising expenditures in India. As the acquisition is through all cash deal, it is expected to provide strong return on invested capital, the company said in the press release.
However, the acquisition is subject to regulatory approvals, including from Ministry of Information and Broadcasting, and execution of binding agreements.
As part of the acquisition, the Company is acquiring MBPL's holding Company and fellow subsidiary that provides activations.
At 11.40 am IST, shares of the company were seen trading at Rs 136 lower by 2.71 per cent, after hitting 52 week high on NSE.