Balaji Tele on a new high

All those on the Street knew that something was cooking on the counters of Balaji Telefilms, which is why the stock price was scaling new highs every single day this week. Today morning too it hit a new high at Rs.203; it has come off this high but remains over 4% higher at Rs.195 levels.

The market is obviously thrilled that Reliance Industries has picked up a 24.9% stake in the company, putting in Rs.413 crore.

This investment is happening through a preferential issue of 2.52 crore shares at Rs 164 apiece, aggregating to the said amount. This money is to be used to speed up content development initiatives mainly on the digital platform, helping it to compete better with other OTT service providers.

This transaction marks a landmark event for the Indian OTT industry and is expected to further accelerate the growing trend of media consumption ‘on-the-go’. This investment will give strong impetus to the company’s focus on becoming India’s content powerhouse.