Shares of cable operators— Den Networks, Hathway Cable— have rallied more than 5% each on reports that Reliance Industries (RIL) is planning to pick up a minimum 26% in leading cable operators, including multi-system operators.
“RIL has approached Den Networks, Digicable Networks, Hathway Cable, the Hinduja–promoted IndusInd Media and Communications Ltd (InCable) and several independent multi-system operators (MSOs) as well as smaller operators with good regional presence," the report suggests.
The move is a part of the group’s strategy to rope in cable operators as well as MSOs as partners to provide last-mile connectivity to consumer homes for 4G broadband services, which would include data, voice and television. There are more than 6,000 cable operators in the country.
Den Networks has rallied 10% to Rs 65.70 and Hathway Cable and Datacom by 6% to Rs 126 on the National Stock Exchange.