Top Story

e4m_logo.png

Home >> Media - Others >> Article

Media stocks on fire as Sensex tests 7,900 pts

19-August-2005
Font Size   16
Share
Media stocks on fire as Sensex tests 7,900 pts

Media stocks rode high in today’s trade as all the scrips ended the day with hefty gains. Deccan Chronicle Holdings, up about 19 per cent to Rs 337.55, led the pack.

Mid-Day Multimedia jumped 17 per cent to Rs 95.25 while Sandesh went up about 3.5 per cent to Rs 244.40. The heavy demand for these stocks came in the wake of the Reserve Bank of India notification on August 11 allowing FII investment in print media firms, brokers said.

The Deccan Chronicle scrip had jumped 9.6 per cent to Rs 292.85 in a single trading session last week while the Mid-Day stock had surged 4.7 per cent in just two trading sessions.

According to media analysts, the sector is sure to witness a spate of mergers and acquisitions. The recent instances of big corporates buying into media firms has also brought cheer to media stocks.

For example, Anil Dhirubhai Ambani Enterprises picked up 51 per cent controlling stake in Adlabs, engaged in the multiplex business. Similarly, Temasek Holdings picked up 10 per cent stake in another multiplex company, Shringar Films, for Rs 20 crore.

The valuation of the media industry has also shot through the roof. HT Media is likely to be valued at Rs 2500-odd crore based on its issue price of Rs 530 per share.

HT Media will be second only to Zee Telefilms, which boasts of a market cap of Rs 7072 crore. Next in line is NDTV at Rs 1390 crore, followed by Deccan Chronicle (Rs 1,397 crore), TV18 (Rs 704 crore), TV Today (Rs 649 crore) and Mid-Day Multimedia (Rs 405 crore).

Earlier, the ministry of information and broadcasting had issued a notification permitting foreign funds, overseas corporate bodies, non-resident Indians and persons of Indian origin to invest in Indian newspaper companies.

Following this, Deccan Chronicle Holdings had announced that it would offer up to 9 per cent of its share capital for raising funds through foreign currency convertible bonds, private placement, American depository receipts or global depository receipts, subject to a 5-year conversion period. Similarly, Hindustan Times has reserved its greenshoe option of 6.96 lakh shares.

Tags

Our typical marketing budget is usually 10 per cent of the topline spend

There are some forces impacting the way our business works. The IT/ITeS sector has changed tremendously. Platforms like Twitter have made everyone journalists. Smartphones have made everyone a photographer. The trend that we are seeing is one of hyperdigitalization, which is causing the lines between product and services to blur. For example, <a href=http://www.exchange4media.com/company/news/amaz...

The OOH sector is among the fastest growing, globally. Brands and marketers have realized its potential and impact and begun to craft medium-specific adverts. Self-regulation is not only necessary but also essential to growth of the sector. The industry needs to exercise a certain level of this self-restraint to prove its commitment to maintaining the best standards in advertising.

<b>Clients are looking for experiential solutions beyond radio or print: Abraham Thomas, Radio City 91.1 FM</b><br><br> From entering new markets to launching large format events, Radio City 91.1FM has been on a roll. The radio channel recently announced the launch of India’s biggest singing talent hunt-Radio City Super Singer Season 8. Earlier this year, the channel set up its own creative-cum...

Under the watchful eye of Walt Disney, Bindass undergoes brand repackaging with a fresh new show ‘Dil Buffering’ simulcast across its linear and social media platforms on September 29 and will launch...

Apart from the mandate for the first project which is the Ashiana Town in Bhiwadi, Tomorrow and InterTwined will deliver brand solutions across film, print, radio, outdoor and activation besides provi...

Despite advertising picking up after a slow Q1, regional FM players still feel that the lingering effect of GST, RERA, demonetisation will still make its impact felt during the upcoming festive quarte...