TV18 stock ends 17% lower after RIL, Viacom18 ink partnership with Bodhi Tree

Shares of TV18 fell over 8 per cent in early trade after Reliance Industries and Viacom18 announced a strategic partnership with Bodhi Tree Systems. Bodhi Tree Systems is a platform of James Murdoch's Lupa Systems and Uday Shankar. The partnership will result in one of the largest TV and digital streaming companies in India.

However, shares of TV18 slumped 8.32 per cent to Rs 68.9 against the previous close of Rs 75.15 on BSE. The stock opened with a gain of 7.78 per cent at Rs 81 and saw profit-booking thereon. The share has fallen after two days of consecutive gain.

Later, the stock touched an intra day low of Rs 60.65, falling 19.29 per cent on BSE. However, it pared losses partially to close at Rs 61.85, down 17.70 per cent.

Commenting on the fall in the stock, Prashanth Tapse, vice president (Research) at Mehta Equities said, "Post yesterday's investment announcement, TV18 shareholders are concerned over large equity dilution which led to the sharp downfall today. It is too early to comment on the deal as we are still unaware of the full deal structure."

Pavitraa Shetty, the co-founder & trainer at Tips2Trades also echoed the views around the equity dilution and said, "Even though the partnership deal between Reliance Industries and Bodhi Tree is a long-term positive for the company, equity dilution could be the reason for the steep fall today. Technically, stock looks weak and could find support near Rs 52-Rs 55 levels only."

It stands higher than 50-day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages. A total of 93.27 lakh shares of the firm changed hands, amounting to a turnover of Rs 63.84 crore on BSE.

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Market cap of the company fell to Rs 10,603 crore. The stock hit a 52-week high of Rs 82.55 on April 5, 2022 and a 52-week low of Rs 32.25 on May 4, 2021.

The stock has gained 113.13 per cent in a year and risen 59.38 per cent this year.

Under the partnership, Bodhi Tree Systems is leading a fund raiser with a consortium of investors to invest Rs 13,500 crore in Viacom18, to jointly build India's leading entertainment platform and pioneer the Indian media landscape's transformation to a "streaming-first" approach, Reliance Industries said.

Viacom18 owns and operates the suite of Colors TV channels and OTT platform, VOOT.