TELEVISION SCRIPS SKYROCKET

Television scrips have come to the limelight over the past couple of months in a stockmarket that was showing signs of collapsing. The government has announced that it will allow foreign investment in broadcasting with a cap of 20%, making such shares a darling with investors and speculators.

Zee Telefilms, Crest Communications, Shristi Videocorp, Sri Adhikari Brothers, are among the scrips that have been zooming to new highs. While Zee Telefilms skyrocketed to a high of Rs 740 as compared to Rs 90 hardly six months ago, Crest Communications notched up a high of Rs 66 against a low of Rs 15 in the past year. Sri Adhikari Brothers too posted a high of Rs 50 against a low of Rs 15. Shristi Videocorp is the strangest case of all with its share price rising to Rs 13 as against the Rs 4 or so it was trading at over the past year.

The Zee Telefilms scrip has been rising because of hectic activity by speculators and, some say, by investors close to the company. Trading in the scrip has been dizzying, on the back of rumors that the production and airtime marketing company for the successful Zee Network, is to form a strategic alliance with Murdoch's Star TV network in India in the area of digital distribution and airtime sales. The company is also expected to announce nippy results in the second quarter.

Market sources say the eventual goal is to take the Zee Telefilms price to beyond Rs 1,000 - closer to Rs 1,400 for the Rs 10 face value share - to increase its valuation should a Star TV-Zee TV alliance take place.

Crest's rise has been based on rumors that Time Warner is to invest in the company apart from awarding it an animation programming contract. Shristi Videocorp's rise is inexplicable as it failed in launching a six channel digital service and has been running a loss-making channel. In all probabilities, it is not based on fundamentals, but the fact that it has been lumped with the likes of Crest, Zee and Sri Adhikari Brothers.