Rakesh Jhunjhunwala to invest in Next Mediaworks’ subsidiary; stock surges 60% in six sessions

MUMBAI: Shares of Next Mediaworks have surged 29.71 per cent in four sessions as the company announced plans to rope in ace investor Rakesh Jhunjhunwala to raise funds for radio auctions.
It surged as much as 9.98 per cent in intraday trade on Tuesday.
Next Radio (NRL), a subsidiary of the Next Mediaworks, is planning to raise Rs 115 crore for migration of its existing radio licences from Phase II to Phase III and for participation in the auctions for new licenses.

“This is proposed to be done through a combination of debt of about Rs 80 crores and issue of equity/ convertible preference shares of NRL to Mr. Rakesh Jhunjhunwala and/or his associates for Rs 25 crores ("Investor"),” the company said in a filing to stock exchanges on June 18, 2015.

Next Radio operates FM channels under the brand name of " Radio One" and is present in seven cities across India.

The stock was locked in 10 per cent upper circuit at Rs 13.88 per cent in trade today. Over 39,000 shares were traded in the counter against a two-week average of 21,000 shares. There were 93,447 pending buy orders and no sellers in the counter.