TV18 Broadcast Ltd hits a 20 per cent upper circuit amid bearish market; here's why

Its parent company Network18 too hit the upper circuit.

TV18 Broadcast Ltd, one of the leading broadcasting companies in India, witnessed a super bull rally today as strategic investors have become more likely to buy a significant stake in Viacom18. Before we analyze the news, let us try to understand the chain of holdings here. Viacom18 is a joint venture between TV18 Broadcast (51 per cent stake) and Viacom CBS (49 per cent stake). TV18 is a subsidiary of Network18 Media & Investments Ltd of which Reliance Industries Ltd (RIL) is the ultimate beneficiary. 

Lupa India is an investment company run by Uday Shankar and James Murdoch who are looking forward to acquiring a 39 per cent stake in Viacom18. Various reports say that the deal is in its final stages, which is why the stock is running up and has hit a 20 per cent upper circuit. The Network18 stock has also hit the upper circuit of 5%. 

TV18 Broadcast runs huge digital content on TV, OTT platforms and other channels. Its prime channel- Colors, ranked second in the Hindi genre. Its OTT platform Voot has been a game-changer for the company. Viacom18 has added NBA partnerships to its sports portfolio which only adds to its strong presence in the digital entertainment space. 

With today’s upper circuit, it has also created a fresh 52-week high of Rs 58.40 and as of now, trading has been halted at that price on the BSE.