The shares of radio operators, including Reliance Broadcast Network, Entertainment Network India, Bag Films, Next Mediaworks and TV Today Network, have gained betwen 2% and 10% each on reports that the union cabinet approved auctions for the third phase of FM radio privatisation and expects to raise Rs 1,733 crore in the process.
According to reports, the cabinet also approved raising the foreign investment limit in the sector from the current 20% to 26%. In the third phase, the government reportedly plans to auction 839 private radio station licenses in about 227 towns and cities, following a second phase expansion when it had granted more than 200 licenses, the Reuters report suggests.
Reliance Broadcast Network has rallied 7% at Rs 86.05 on the BSE. As many as 677,000 shares have changed hands on the counter till noon deals, against an average 42,000 shares traded daily in the past two weeks.
