Ratan Tata, who in his personal capacity has been making bets on technology companies, picked up an undisclosed quantity of shares in the company helmed by the famous film producer and former parliamentarian Pritish Nandy, the company said in an exchange filing.
The announcement triggered a spike in the shares of Pritish Nandy Communications, which were locked in their 10 per cent upper circuit limit of Rs 23.55 on the National Stock Exchange.
The media and entertainment company is known for hits such as ‘Chameli’, ‘Kaante’ and ‘Jhankaar Beats’. Recently, the entertainment content producer hit jackpot with its first over-the-top streaming production ‘Four More Shots Please!’.
Tata’s vote of confidence in the company is accentuated by the fact that the company’s promoters, too, have recently increased their stake. In recent months, the promoters have raised their stake in the company by 4.95 per cent to 54.84 per cent. Their stake in the company stood at 44.95 per cent at the end of 2019.
The company’s financial performance has also shown some improvement in recent quarters. The company managed to narrow its net loss in the September and June quarter of the current financial year. However, its revenues have taken a deep dive due to the affects of the COVID-19 pandemic.
Industry watchers suggested that Ratan Tata’s acquisition of stake in the company could be a bet towards streaming content, which is considered to have a strong growth runway going ahead.
