Market movers: Network18 group stocks tank like ninepins; here’s why

NEW DELHI: Viacom18 -- a 51:49 joint venture between Reliance Industries-owned TV18 and Paramount Global, formerly known as ViacomCBS – said it will raise Rs 13,500 crore from James Murdoch and former Star & Disney India head Uday Shankar-backed Bodhi Tree Systems.

But this apparently spooked existing investors of TV18 Broadcast and in turn Network18 Media and Investments as they believe the deal will result in reduction of the stake of TV18 in the company. This led to a run on both counters.

TV18 Broadcast plunged 17.70 per cent to Rs 61.85 while Network18 Media & Investments tanked about 20 per cent to Rs 91.30. Both stocks have jumped significantly in the last one year with the latter surging over 100 per cent.

Double bonanza
We have seen many companies announcing buybacks to reward their shareholders. However, some companies are apparently doing well enough to declare dividends and buyback of shares.

Motilal Oswal Financial Services, which runs broking and mutual fund business, on Thursday in its earnings announcement said it will distribute Rs 3 per share to their shareholders. Besides, the company will also buyback shares. Its board will meet on Mat 17 to decide on the matter. The quantum of the buyback and other details will be announced thereafter.

Meanwhile, the company reported the highest ever operating PAT of Rs 905 crore, up 69 per cent year on year in FY22 and Rs 262 crore, up 41 per cent year on year in Q4FY22.

The stock eventually ended up about 2 per cent.

Big order
It is rare for a company to get an order as big as their market cap. But whenever that arrives it leads to a positive stock reaction.

Capacit'e Infraprojects, a Rs 950 crore market cap company, has received a contract worth Rs 826.49 crore. This includes a proposed turnkey development of multi speciality hospital in Bhandup, Mumbai, from Municipal Corporation of Greater Mumbai for Rs 599.04 crore and construction of residential project including Civil, RCC Structure, Masonry & Plaster works at Sector 58A, Seawoods, Navi Mumbai from a private sector client for Rs 227.45 crore.

The stock jumped nearly 4 per cent following the disclosure.