Reliance Cap MF Acquires 9.43% In TV 18 For Rs 18 Cr

Mumbai, Nov 7: | Updated: Nov 8 2003, 05:30am hrs
Reliance Capital Mutual Fund (RCMF) has acquired a 9.43 per cent stake in Television Eighteen India Ltd the company that runs the CNBC-TV18 business channel. RCMF, according to sources, has picked up 11,45,000 shares of Television Eighteen at an approximate price of Rs 164 per share, amounting to about Rs 18 crore.

According to a press statement from RCMF, the acquisition has been split between two of its schemes Reliance Vision Fund and Reliance Growth Fund, its most popular schemes. While Reliance Vision Fund will hold 5,50,000 shares, Reliance Growth Fund will hold the remainder 5,95,000 shares.

RCMFs CEO Amitabh Chaturvedi said, this is a pure mutual fund investment and we do not have any vested interests. We have always had a research-based approach to the market and feel that this company is doing well at this point of time and also has great potential going ahead from here. He added that the media sector is undervalued and a lot of opportunity remains in it.

When contacted, TV18s managing director Raghav Bahl said, we understand that Reliance Capital Mutual Fund has picked up a stake. They are a high-quality institutional investor and we are delighted about it. Pointing out that TV18, over the last six months, has attracted a high pedigree of investors, he explained that Reliance was another significant investor. We already have names like Franklin Templeton and Oppenheimer investing in TV18 over the last six months, he added.