The share price of JM Financial on Tuesday gained by as much as 9.5 per cent during the first hour of the session as talks of Sony Entertainment Television is looking to buy out some ETV network channels. The stock of JM Financial, which owns significant stake in ETV, ended the day up by 1.4 per cent at Rs. 21.75, paring most of the initial gains. The stock touched the day's high of Rs 23.50 and a low of Rs 20.60.

Sony Entertainment Television is looking to buy out six regional channels belonging to the Ramoji Group-owned ETV network of channels, confirmed a source close to the development.

While the details regarding the value of the deal are not known, the source confirmed that JM Financial is eager to exit from the promoter company of ETV. JM Financial had in 2008 bought around 39 per cent stake in Ushodaya Enterprises, the promoters of ETV for about Rs 2,600 crore.

JM Financial has already initiated the process for the stake sale, the source said. “JM is offloading its stake and is looking at the best way to transfer the stake. As we understand, they are looking at only one player right now — Sony Entertainment Television — which was chosen for the lack of its regional presence,” said the source.

Sony Entertainment has five sister channels with nation-wide presence, but no regional channels.

Another ETV company insider confirmed that the promoter is looking for an investor who would be a part of the ETV-promoter group, so that the IPO process can be initiated in the future.

Neither Sony nor JM Financial officials were available for comment.

ETV has around 12 regional channels, out of which Sony will be buying six once the deal goes through. ETV2, the Telugu news channel, is not part of the deal.

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