The Hindu Business Line : Wire & Wireless turns active

Wire & Wireless India Ltd, the recently listed cable network entity of the Essel Group, has of late seen substantial activity despite slide in market value. According to market sources, some big market players are reported to be accumulating the stock at lower levels, while certain existing investors have made quiet exits.

The reason for the heightened activity is understood to be market-making efforts around the stock. A section of punters is placing a bet on its sharp revenue growth potential in the medium to long-term considering its high penetration (already in 35 cities) and a relatively better return in view of its small capital base of Rs 21.72 crore. Another set of long-term institutional investors are learnt to be buying the stock for its relatively lower valuation than the listed direct-to-home player with a thinner revenue stream. The stock on Monday recorded 5.13 lakh traded quantity (2-week average 6.83 lakh shares) on the BSE and finished at Rs 72.20 after hitting a day's high at Rs 73.90. Among the recent sellers in the counter was pre-IPO investor Fidelity International (on May 15, it sold 20.38 lakh shares - nearly one per cent of the paid-up capital).

Jayanta Mallick

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