Reliance Industries, led by Mukesh Ambani, will acquire equity stakes in Balaji Telefilms, as the board of Balaji Telefilms approved the acquisition in its meeting, through a preferential issue of
2.52 crore equity shares at Rs 164 each, aggregating to Rs 413.28 crores, subject to necessary shareholder and other approvals.
The transaction is expected to be completed in 45-60 days.
Incorporated on November 10, 1994, Balaji is an entertainment content producer operating across television, movie and digital platforms. Over the years, the Company has demonstrated sustained success in pioneering the production of differentiated content across different genres and languages. The Company has recently launched ALTBalaji (“ALT”), a multi-device subscription video on demand platform, which offers original, premium and exclusive content for a global digital audience and in a short span post its launch has garnered over four million downloads across 80 countries.
It has a paid-up share capital of Rs 15.2 crore (as on March 31, 2017) and generated turnover of Rs 421 crore, Rs 293 crore and Rs 347 crore in FY 17, FY 16 and FY 15, respectively.
Jeetendra Kapoor, Chairman, Balaji Telefilms said “We welcome Reliance Industries as a partner in our growth journey towards becoming the preferred content producer for the Indian diaspora across all means of video consumption and across all geographies. This investment is a vote of confidence to the company’s strategic move to own our IP and our viewers. I would like to congratulate Ekta Kapoor, Joint Managing Director, Balaji and the entire Balaji team on this early success and am sure that they will continue to take the Company forward from strength to strength. I would also like to thank Axis Capital for its valuable and unwavering support over the years. They have visualised and facilitated this important investment which will help us become one of the leading content players globally.”
RIL inter alia is engaged in the telecom, digital and media businesses. This investment in content production will further boost its growth in telecom, digital and media businesses.
Axis Capital Limited acted as the sole investment banker for this transaction.