TV18 Broadcast hits upper circuit in a weak market; here's why

New Delhi: Shares of TV18 Broadcast hit the upper circuit on Thursday following media reports that Uday Shankar and James Murdoch eye to pick up a significant stake in Viacom18.

According to the various reports, Lupa India, the investment company set up by Uday Shankar and James Murdoch, is in the final stages of picking up a 39 per cent stake in Viacom 18.

Following the update, shares of TV18 Broadcast hit 20 per cent upper circuit to Rs 58.40. The scrip had settled at Rs 48.70 on Tuesday.

Viacom18 is currently a joint venture in which, TV18 controlled by Reliance Industries, has a 51 per cent stake, and Viacom CBS has a 49 per cent stake.

Viacom runs television and digital entertainment channels and is entering the sports business, according to sources. This news, in particular, becomes significant ahead of the auction of IPL's media and broadcasting rights.

Lupa India is expected to invest over Rs 12,000 crore along with Reliance in the sports and entertainment business of Viacom18. However, the actual amount of investment is still not clear.

Shares of TV18 broadcast have outperformed the BSE barometer in the last year, doubling investors wealth during the period. The scrip has jumped about 32 per cent in the last month.

Shankar-Murdoch will pick up a 39 per cent stake, thereby turning Viacom into a minority player with a 10 per cent share in the company.

The company runs Color channels, Nickelodeon, India, Comedy Central India, VH1 India, MTV India, History TV 18 besides Viacom 18 Studios (which makes movies and other content), and OTT channel Voot.