NEW DELHI: Mukesh Ambani’s Reliance Industries is set to acquire significant stakes in broadband and cable TV service providers Den Networks and Hathway Cable and Datacom, with the boards of the latter two firms expected to okay the deal on Wednesday.
According to sources, RIL is in the advanced stages of discussion with both companies. Both companies are expected to boost Reliance’s capabilities in being able to deliver broadband services through optical fibre networks through Reliance Jio, a plan announced by Ambani at RIL’s last annual General meeting.
Consequently, RJio began accepting registrations in August for its Jio Gigafiber service -- high-speed broadband delivered through optical fibre cable at 100 megabytes per second (Mbps).
News that RIL was set to pick up stakes in the two firms saw stock prices spike during intra-day trade in the bourses. GTPL Hathway, which is a JV of Hathway Cable and Datacom, saw share prices hit 20 per cent, while Den Networks and Hathway Cable rose up to 7 per cent. However, Den Networks stock closed the session down by 1.85 per cent, while Hathway Cable ended 4.84 per cent up.
During the day, both companies also made stock exchange filings stating that their respective boards would sit on Wednesday to “consider and approve proposal for raising of funds by issuance of equity shares”. Hathway currently offers high-speed cable broadband services across 16 cities, with around 35,000 kilometres of fibre cable network and 8 lakh broadband customers.Den, meanwhile, has already started its first phase of expansion in 15 cities, has plans to roll out its services in over 500 cities in the next two to three years.
RIL trumps TCS
Reliance Industries on Tuesday again surpassed IT major TCS to become India’s most-valued firm by market valuation. At close of trade on Tuesday, RIL’s market capitalisation stood at I7,37,576.57 crore on the BSE, which was I1,471.26 crore more than that of TCS.