Hinduja Ventures rose 2.53% to Rs 343 after its board said it would recast the media and communications business of its unit lnduslnd Media & Communications to unlock shareholders value.
The board of directors of Hinduja Ventures (HVL) approved scheme of arrangement between Induslnd Media and Communications (IMCL) (demerged company) and Hinduja Ventures (resulting company) and their respective shareholders. The exchange ratio for the proposed restructuring exercise shall be 10 equity shares of HVL fully paid up for each 125 equity shares of IMCL fully paid up.
IMCL business consists of digital content distribution using multiple platforms such as satellite and fibre. It also carries broadband and internet business carried out through its subsidiary OneOTT Intertainment (OIL). IMCL also has a dedicated unit that develops content for various platforms and owns a significant content library and movie negatives.
HVL believes that this media business has a high growth potential going forward due to a fast maturing industry and recent regulatory reforms like new tariff order. These stimuli provide the right opportunity to consolidate media vertical which will propel it to the next level of growth and performance. Benefits of this consolidation into a single group will achieve flexibility, scale and financial strength.
The appointed date of the scheme of arrangement will be 1 October 2019 after securing all statutory and regulatory approvals. The announcement was made after trading hours yesterday, 27 August 2019.
Shares of Hinduja Ventures rose 11.18% in five trading sessions to its current market price of Rs 343, from a recent closing low of Rs 308.50 on 21 August 2019.
On BSE, 615 shares were traded in Hinduja Ventures counter, compared to a 2-week average of 432 shares. The stock hit an intraday high of Rs 344.65 and an intraday low of Rs 336.
It hit a 52-week high of Rs 700.45 on 3 September 2018 and a 52-week low of Rs 276.10 on 1 August 2019.
Hinduja Ventures is engaged in trading of electronic equipments, treasury and investments. The company's segments include media and communications, real estate, investments and treasury.
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