NDTV shares up 5 pc on news of Ajay Singh buying stake

Mumbai: Shares of news broadcast network New Delhi Television, NDTV, shot up more than 5 per cent, breaking the upper circuit limit of Rs 53.10, on Friday as news that Ajay Singh -- managing director of SpiceJet -- has bought a controlling stake in the ailing company came in.

News reports on Friday said Ajay Singh will go for a 40 per cent stake in NDTV while founders and promoters of the channel Prannoy and Radhika Roy will be holding around 20 per cent stake in the channel once the deal is clinched. Ajay Singh has been credited with turning around SpiceJet after he took over the carrier that was flying in rough weather at the time.

At around 9.30 am, stocks of the news channel had gone up by 4.94 per cent to Rs 53.10. At the same, SpiceJet was trading at 1.92 per cent down at Rs 142.75 around. The benchmark, BSE Sensex was lower by 196 points, or 0.61 per cent, at 321,73.61.

NDTV has been reeling under severe financial constraints over past many years and SpiceJet founder showing interest in reviving the company could come as a big relief for all stakeholders. The report is as per a rough estimate has been valued at Rs 600 crore. Part of the deal that is Rs 100 crore would go to the promoters Prannoy and Radhika Roy, reports said.

In June this year, the banking fraud unit of the Central Bureau of Investigation had raided and conducted searches at the residence and offices of Prannoy and Radhika Roy over allegations of bank fraud, a charge that the husband and wife duo vociferously denied terming it as "an attempt to muzzle the free media".