To raise up to Rs. 600 crore by way of rights issue of its equity shares to the Company’s shareholders
BestMediaInfo Bureau | Delhi | July 26, 2012
The Board of Reliance MediaWorks Ltd, a film and entertainment services company and a member of the Reliance group, today approved raising an amount up to Rs. 600 crore by way of rights issue of its equity shares to the Company’s shareholders, subject to necessary sanctions and applicable provisions of law.
The Board of Directors have empowered its Committee to decide upon the terms and conditions including the price, share entitlement ratio, timing and other details of the rights issue, which will be announced in due course.
Over the past 3 years, Reliance MediaWorks has made strategic investments and scaled business operations to become an end to end integrated service provider across the entire film and media services value chain.
In the Film and Media Services space, the Company has comprehensive presence with services like Motion Picture Processing and DI; Film, Audio Restoration and Image Enhancement; 3D; Digital Mastering: Studios and Equipment rentals; Visual Effects; Animation; Broadcast and TVC Post Production with presence across India, USA and The UK. In the Exhibition space, Reliance MediaWorks has created largest cinema chain with over 490 screens spread across India, USA, Malaysia and Nepal and catered to approximately 4 million customers in the 12 months ended March 31, 2012.
The funds raised through Rights Issue would be utilized, inter alia, for substantially reducing the debt of the company.
Reliance MediaWorks is in the process of subsidiarisation of the its exhibition and film and media services divisions, to pursue strategic growth opportunities and expand its business. The subsidiarisation step is aimed at garnering fresh investment in the Company’s specific business verticals.
Reliance MediaWorks has recently signed an indicative non-binding term sheet with a private equity fund to acquire a substantial minority stake in Reliance MediaWorks’ Film and Media Services division through an investment of Rs. 605 crores. The proposed investment is subject to completion of customary detailed due-diligence, definitive documentation, completion of subsidiarisation of the film and media services business, and approvals as may be necessary.