TV Today Network falls 13% after board nod for sale of radio business

The stock had outperformed the market by surging 17% during last week as compared to 0.39% decline in the S&P BSE Sensex.

TV Today Network (TVTNL) has dipped 13% to Rs 460 on the BSE in noon deal trade after the company said its board granted in principle approval for sale of radio business of the company to Entertainment Network India (ENIL) as a going concern, by way of a slump sale.

TVTNL has three radio stations in New Delhi, Mumbai and Kolkata under the brand name ISHQ 104.8FM and frequency 104.8FM.

The company said the board has decided not to go ahead with the transfer of the radio business of the company, comprising of three radio stations to Vibgyor Broadcasting Private Limited, a wholly owned subsidiary of TVTNL.

“The company’s core areas of business are television news broadcasting and digital business. Accordingly, with a view to focus more sharply on its core businesses and to enhance the value of business, the company is undertaking the sale of its radio business comprising of the three radio stations as a going concern, way of a slump sale,” TVTNL said in a statement.

The proposed transaction is expected to be consummated subject to diligences and execution of mutually agreed terms and conditions, regulatory approvals. The radio business reported a turnover of Rs 91 million in FY16-17, is 1.6% of total revenue of TVTNL.

In last week, the stock had outperformed the market by surging 17% as compared to 0.39% decline in the S&P BSE Sensex. It touched a record high of Rs 558 on Friday, March 16, 2018 in intra-day trade.

At 03:04 pm; the stock was trading 11% lower at Rs 463 on the BSE, as compared to 0.66% decline in the benchmark index. A combined 681,042 equity shares changed hands on the counter on the BSE and NSE so far.