Stock price of Network 18 Media & Investments Ltd shot up by over 17 per cent in the morning trade today following move by Reliance Industries (RIL) to acquire control in the company, including its subsidiary TV18 Broadcast Ltd, for Rs 4,000 crore.
The scrip of Network 18 Media made a positive opening and further zoomed 17.38 per cent to Rs 53 - its 52-week high level on the BSE.
On the NSE, the stock soared 16.64 per cent to touch its one-year peak of Rs 52.90. It pared some of the gains and was trading at Rs 47.50, up 5.20 per cent at 1225 hrs.
Shares of TV18 also opened the day on a firm note, surging 7 per cent, but later fell by 4.72 per cent to Rs 33.30 on the BSE on profit-booking.
The Board of RIL had yesterday approved funding of up to Rs 4,000 crore to Independent Media Trust (IMT), of which RIL is the sole beneficiary, for acquisition of control in Network 18 Media & Investments Ltd (NW18), including its subsidiary TV18 Broadcast Ltd (TV18).
The funding includes open offers to be made consequent to the acquisition, RIL had said in a statement.
"IMT would use the funds to acquire control over NW18 and TV18 resulting in ownership of about 78 per cent in NW18 and 9 per cent in TV18 and to acquire shares tendered in the open offers," RIL said.
NW18 is the owner of a suite of premier digital internet properties, e-commerce businesses and differentiated broadcast content.
This suite includes In.com, IBNLive.com, Moneycontrol.com, Firstpost.com, Cricketnext.in, Homeshop18.com, Bookmyshow.com; the broadcast channels include Colors, CNNIBN, CNBC TV18, IBN7, CNBC Awaaz.