Network 18: Box-office hit

Stocks In The News

The stock has appreciated by 32 per cent in the last two trading days after Network 18 Fincap, the group holding company of TV18, GBN, Web18, HomeShop 18 and Studio 18, announced its intention to participate in the $110 million Indian Film Company, which is proposed to be listed on the Alternative Investment Market (AIM) of the London Stock Exchange. Network l8 will participate in the venture by investing $10 million through ordinary shares allotted at par.

The market price of the company rose by 32 per cent in the previous two trading sessions from Rs 389.90 to Rs 515.75 on the Bombay Stock Exchange (BSE). The traded volumes of the stock increased on the BSE and the NSE from 5.6 lakh shares to 1.05 crore shares.

Studio18, the full-spectrum motion picture division of Network 18, will enjoy a special relationship with The Indian Film Company. Studio18 will offer all the films produced by it to the AIM-listed company on a "first rights" basis.

Studio18 will also offer a full menu of services, including production supervision, domestic and international theatrical distribution, home video distribution and film acquisition and syndication services.

Raghav Bahl, the founder and promoter of the TV18 group, said, "We are excited about sponsoring The Indian Film Company on the AIM. It will enable high-quality international investors to reap the benefits of the structural changes and growth opportunities being thrown up by the Indian film industry."

IFCI: Buoyant profits

The Industrial Finance Corporation of India (IFCI) stock hit an all-time high of Rs 50 on the Bombay Stock Exchange (BSE) after the company posted robust results for FY07. The market price of the company rose 20 per cent last week from Rs 40.40 on April 27 to close at Rs 48.55 on May 4, 2007. The average daily traded volumes on the BSE and the NSE more than doubled from 7.3 crore shares to 15.1 crore shares.

IFCI turned around in FY07 after a gap of six year. The company posted Rs 873.71 crore net profit in 2006-07 against a net loss of Rs 74.10 crore in 2005-06. Total operational income of the company increased by 21 per cent from Rs 1,645.69 crore in FY06 to Rs 1,989.73 crore in FY07. The company earned a profit of Rs 793.30 crore on account of sale of shares in certain concerns where assistance was given as part of promotional and development financing.

IFCI sold 31.50 lakh equity shares constituting 7 per cent holding of the National Stock Exchange of India to four institutional investors "� Goldman Sachs, NYSE, General Atlantic and Soft Bank. Meanwhile, the board of IFCI passed a resolution to increase the FII/FDI holding limit to 74 per cent subject to the approval of its shareholders and the government.