TV18 scrip up on news of UK, US content deal

Television broadcaster Television Eighteen's (TV 18) stock spurted 20 per cent to Rs 232.25 yesterday, following news that it would provide content to a satellite network in the US and the UK.

Dealing room sources said the counter had outstanding buy orders even as more than 1.62 lakh shares were traded on the Bombay Stock Exchange and over 4 lakh shares changed hands on the National Stock Exchange.

Ajay Chacko, head of marketing at TV 18 confirmed that the company would be a content provider to South Asia World, a satellite network.

Market sources said there were rumours that the company was looking for a private placement of equity. According to sources, a fund house with a dedicated media fund had already taken about 6 lakh shares in a private deal at around Rs 230 per share.

As on September 30, 2004, foreign institutional investors (FIIs) held a 16.51 per cent stake in the company, the promoter group held 30.92 per cent, UTI and mutual funds held a 19.34 per cent stake and the public held 20.29 per cent.

According to information posted on the Bombay Stock Exchange website as on September 30, 2004, T Rowe Price New Asia Fund is the largest-single FII shareholder with 6.53 per cent, followed by Oppenheimer ( 3.22 per cent),Goldman Sachs ( 2.58 per cent) ,HSBC Financial Services(1.48 per cent) and India Liberalisation Fund ( 1.04 per cent).