Shares of TV18 Broadcast, Den Networks, Hathway Cables, Network 18 surged up to 20% in early trade after RIL on Monday announced consolidation of its media and distribution assets under a single entity.
Hathway Cables shares hit 20% upper circuit at Rs. 23.10 per share on the BSE, Network 18 Media and Investments also hit 5% upper circuit of Rs. 30.05, TV18 Broadcast shares rallied up to 20% to hit day's high of Rs. 30.10 and Den Networks jumped as much as 10% to record a day's high of Rs. 59.50 per share.
Post the deal RIL said, Network 18, the country's biggest listed media entity would become a company with annual revenue of nearly Rs. 8000 crore and take advantage of significant economies of scale.
"The aggregation of a content powerhouse across news and entertainment (both linear and digital) and the country's largest cable distribution network under the same umbrella shall boost efficiency and exploit synergies, creating value for all stakeholders," Reliance said in a statement on Monday after the boards of the 4 companies met for approing the consolidation.