"The partner has to add value to the company. We are looking at a partner who would provide business synergy to the existing business," said Zee Network executive president (finance) BR Jaju. Jaju, however, did not elaborate as the "matter was to come up in the board meeting" on September 27.

The news fuelled the stock to a new high of Rs 4,536 on the BSE with a volume of 56,000 shares. On the National Stock Exchange, the stock was close to the circuit level - up 7.87 per cent to close at Rs 4,549. The scrip topped the turnover chart on the BSE at Rs 377 crore, contributing more than 13.5 per cent to the turnover of Rs 2,789 crore. On the NSE, Zee Telefilms was second only to SatyamComputer, notching a turnover of Rs 311 crore. The scrip has seen a smart rally since mid-June this year when it was hovering around Rs 1,400 levels. Since September 1, Zee has gained 49 per cent from Rs 3,048 in just 15 trading sessions.

"The rally in the scrip is likely to continue since the strategic sale and a media acquisition will help Zee consolidate its position in the media business. The stock split is likely to be in the ratio of 1:5 which will bring down the stock price to around Rs 1000 levels," said an analyst.

According to the notification to BSE, "The board meeting is going to deliberate upon acquiring stake in media-related businesses; the company is proposing to make allotment on issuance of additional equity up to 10 per cent of the capital on preferential basis to a foreign strategic investor." Zee Telefilms has a equity of Rs 18.83 crore and a 10 per cent offer will bloat it to Rs 20.7 crore.

Zee has announced plans to expand its print business. The company will soon launch TV World,a magazine on the television industry. Deepak Shourie, who joined the Network in September to head the print and publishing business, will be consolidating two existing publications: Zee Premiere and Zee Entertainment, a trade cable guide publication. Zee has made its intentions clear that it is looking at possible media acquisitions to expand business.

The AGM meeting on the same day will take up two important issues: Hiving off of the education business and consolidation of Zee Telefilms with Zee Multimedia Worldwide.