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TV 18 opens at a whopping
1000 per cent premium; to launch portal on Budget Day
TV 18
listed at a massive 1,000 per cent premium on the Bombay
Stock Exchange (BSE) today. It opened at RS 1,950 and touched
an intra-day high of RS 1,990 on the first day of its trading.
The RS 10 scrip was issued at RS 180 and had received a
overwhelming response when it was oversubscribed by 55 times.
A whopping 150,000 shares were traded in the first ten minutes
trading and the volumes rose to 3,50,000 in just two hours.
The share was hovering around RS 1,600 after a couple of
hours of trading. The market had already speculated the
opening price to be RS 2,000 on the day prior to its listing.
The company has announced its plans to launch a business
portal on 29 February which would coincide with Budget Day.
"The portal will be different from any that is around
today. It will take synergies from the television channel
CNBC to offer the consumer a unique experience," says
TV 18 managing director Raghav Bahl.
The project is estimated to cost RS
200 million. Already having invested RS 30 million, the
company would at some stage go in for Venture Capital. "We
are incubating the portal under TV 18 currently. Later on
we will spin it off as a 100% subsidiary. We cannot afford
the portal dragging down the earnings of TV 18," says Bahl.
The company hopes the portal to break even within three
years of business. Officials, however, refused to disclose
details about the project.
Earlier, TV 18 made history on 15 February when the Bombay
Stock Exchange invited brokers for a pre-listing meet which
was the first of its kind, at the trading ring of BSE. Raghav
Bahl, Managing Director, Television Eighteen (TV 18) addressed
the stock brokers and the media about the company profile
and its operations and appeared to be confident about his
stock.
The stock is expected to show wonders for the investing
community with very few media scrips to invest in. The questions
which still remain to be answered are whether the company
with revenues just around
RS 300 million will continue to attract investor sentiment
when biggies like UTV and Nimbus make their listings on
the stock exchange. It does not have much library product
like UTV and Nimbus as it mainly makes commissioned shows.
Its only USP is its partnership business channel CNBC India.
Bahl will have to take steps to remedy that at some stage.
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