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RBNL Aims To Raise Rs. 400 Crore

The Board of Directors approved a proposal to bring preferential issue of equity shares to the promoter group and other investors.

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BestMediaInfo Bureau
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RBNL Aims To Raise Rs. 400 Crore

The Board of Directors approved a proposal to bring preferential issue of equity shares to the promoter group and other investors.

BestMediaInfo Bureau | Delhi | September 3, 2010

publive-imageThe Board of Directors of Reliance Broadcast Network Ltd. (“RBNL”) has approved a proposal for new capital infusion of over Rs. 400 crore into the Company, 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, if required, thereby enabling greater participation in future growth opportunities, while enhancing overall shareholder value.

The proposed infusion of the new equity capital will lead to the following benefits for RBNL:

  • Substantial increase of over 300% in shareholders funds from Rs. 167 crore to Rs. 568 crore.
  • Enhanced ability to actively participate in forthcoming growth opportunities in Phase III of radio bids, acquiring strategic inventory in the OOH space, etc.
  • Strengthening of the Company's credit rating profile.
  • Increase in borrowing ability, if required

Commenting on the development, Tarun Katial, Chief Executive Officer, Reliance Broadcast Network Limited, said, “The media and entertainment sector is back on an exciting double digit growth path.  This resurgent market has brought with it changes in expectations from marketers and advertisers, as well as newer opportunities for media companies.  The equity capital infusion is a reflection of the strong confidence of our promoter group in the future growth prospects of the Company.”

The new capital infusion is proposed through a preferential offer of equity shares to the promoter group and other investors. The promoter group will subscribe to approximately 2.90 crore shares aggregating approximately Rs. 250 crore, and investors approximately 1.90 crore shares aggregating over Rs. 150 crore. The preferential offer, which is subject to necessary approvals, will be made at a price of Rs. 85 per share, reflecting a premium of over 25% to the last 26 weeks average market price.

Info@BestMediaInfo.com

Info@BestMediaInfo.com

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