is bullish on the potential of Hinduja's cable
TV business. While it has been buying shares
of Hinduja Ventures (new name of Hinduja TMT)
from the market this year, it has made no
purchase of HGSL after it was spun off,"
an industry source says.
27 June, Reliance Media and Entertainment
Fund made a purchase of 25,000 shares and
held 5.03 per cent (1.03 million shares)
in Hinduja Ventures. Reliance also bought
in October through Reliance Media and Entertainment
Fund and Reliance Capital Trustee to take
its holding to 7.06 per cent.
November Reliance Long Term Equity Fund
increased its stake to hold 1.88 million
shares, or 9.17 per cent, of Hinduja Ventures.
Ventures has 63 per cent in IndusInd Media
& Communications Ltd (IMCL), the merged
media company of the Hindujas dealing in
cable TV distribution (Incablenet), broadband
(In2cable) and content (CVO and film financing).
Ventures also owns a 47-acre real estate
property in Bangalore and is planning to
enter into new ventures in various felds
starting with healthcare. It also has a
cash of Rs 5.11 billion, after the Group
sold off its telecom holdings in Hutch.
shares of Hinduja Ventures have seen a sudden
surge in December after hovering above the
400-mark on the BSE in July. It breached
the 500-mark in November and on 28 December
closed at 702.40.
cable business has seen a turn around and
the media company has posted a profit of
around Rs 100 million for the first half
of this fiscal on a turnover of Rs 900 million.
In 2006-07, the company was profitable but
on sell of shares.
is also a sector rub off effect on the scrip
price as the other distribution companies
- Wire & Wireless India Ltd and Dish
TV - have also recently seen a rise on the
stock market," says an analyst with
a global broking firm.
Ambani's Reliance ADAG will be getting into
the distribution business with its direct-to-home
(DTH) service kicking off in 2008 under
the Big brand.