Dish TV, Den Networks shares gain on FDI limit hike buzz

Shares of Dish TV and Den Networks rose in the morning trade on Monday after media reports said that government is mulling to raise FDI cap in Direct To Home (DTH) and TV cable operators to 100 per cent.

At 11.42 am, the Dish TV stocks were trading 5.03 per cent up at Rs 114.75. Den Networks Ltd shares were up 1.53 per cent at Rs 129.00 during the same time.

Currently, government only allows 74 per cent FDI in DTH and cable operators.

According to Angel Broking, an inter-ministerial committee is considering a proposal to raise FDI (foreign direct investment) limits to 100% from 74% currently in broadcasting carriage and content services, including direct-to-home (DTH) and cable networks, aimed at attracting overseas investment and improve infrastructure.

The brokerage firm further said that in case of broadcasting content services – uplinking of news and current affairs TV channels, the proposal under discussion is to raise the limit to 49% from the present 26%. Increase in FDI limit will help improve the pace of digitization of broadcasting services across India. Positive for cable and DTH companies such as Dish TV, Den Networks & Hathway.

Later, shares of Dish TV closed 6.59 per cent up at Rs 116.45 while Den Network closed 0.35 per cent down at Rs 126.60.

Strides Arcolab shares gain on acquiring CNS divisions of Ranbaxy.

Strides Arcolab shares gained over 4 per cent on Monday after Sun Phamaceutical Industries and Strides Arcolab announced that they have entered into a definitive agreement related to erstwhile Ranbaxy’s ‘Solus’ and ‘Solus Care’ divisions operating in the central nervous system (CNS) segment in India.

The scrip closed 4.57 per cent up at Rs 1,198.20.

The agreement involves transfer of these two marketing divisions, along with employees to Strides for a consideration of Rs 165 crore. As per IMS July 2015 MAT report, all the products of these two divisions together accounted for approximately Rs 92 crore in sales.

Last one week high and low of the scrip stood at Rs 1,196 and Rs 1,100.80 respectively. The current market cap of the company is Rs 6,961 crore. The promoters holding in the company stood at 27.65 per cent, while institutions and non-institutions held 45.94 per cent and 26.41 per cent, respectively.