Reliance Broadcast Network soars on fund raising plans

September 2nd, 2010 - 3:59 pm ICT by IANS  

Mumbai, Sep 2 (IANS) Reliance Broadcast Network Ltd (RBNL), part of the Anil Dhirubhai Ambani Group (ADAG), was trading at the upper circuit filter limit at Rs.116 on the Bombay Stock Exchange (BSE) Thursday.
The scrip had opened 4.98 percent higher than its previous close, a day after the company said it would raise over Rs.400 crore.

After the stock markets closed Monday, RBNL said its board had approved a proposal to raise over Rs.400 crore by preferential issue of equity shares to the promoter group and other investors.

The new equity capital will substantially enhance RBNL’s net worth and augment its borrowing capabilities, the company said.

The promoters will subscribe about 2.9 crore shares aggregating approximately Rs.250 crore and investors will subscribe about 1.9 crore shares worth Rs.150 crore.

The preferential offer will be made at a price of Rs.85 per share, a premium of over 25 percent to the last 26 weeks average market price.

Post offer, the sharholders funds will increase over 300 percent from Rs.167 crore to Rs.568 crore.

The funds are expected to help RBN in its new ventures in television broadcasting, as well as pump its activities in the radio and advertising.

RBNL recently formed a 50:50 joint venture, BIG CBS Networks Pvt. Ltd, with CBS Studios, a division of international media and entertainment major CBS, to beam channels to India, Pakistan, Bangladesh, Nepal, Bhutan, Sri Lanka and the Maldives.

The new entity Big CBS will launch three channels– BIG CBS Spark, BIG CBS Love and BIG CBS Prime. The channels are expected to be beamed in the October-December quarter.

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