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NEW DELHI: Shares of Hathway Cable Datacom and Den Networks jumped up to 8 per cent in Tuesday's trade after ET reported that Reliance Industries (RIL) will soon buy a controlling stake in two of India’s largest cable TV and broadband service providers.
The move may help RIL ramp up coverage of its ambitious high-speed broadband network.
Shares of Hathway Cable Datacom rose 7.71 per cent to hit a high of Rs 31.2 on BSE.
Den Networks gained 6.14 per cent to hit a high of Rs 80.30.
The stock later cut gains.
Key people with direct knowledge of the development said RIL is likely to own more than 25 per cent each in the two companies giving it the ability to control developments and get a seat on the board.
Promoter stakes in both firms are likely to drop as a result with the acquisition also triggering open offers, they added.
The deal is expected to be announced in the next few days.
Both companies have told the stock exchanges that the respective boards are meeting on October 17 to discuss and approve a proposal for raising funds.
Email queries sent to RIL, Reliance Jio, Hathway and DEN remained unanswered till press time Monday.
