Reliance MediaWorks planning rights issue of equity shares, board meet on May 28

NEW DELHI: Reliance MediaWorks, a part of Anil Ambani-led Reliance group, today said it is planning a rights issue of equity shares for which its board will meet on May 28 to consider the proposal.

In a filing to the Bombay Stock Exchange, the company said its board of directors will also consider and approve audited financial results for the year ended March 31, 2011.

"The meeting of board of directors will be held on May 28, 2011, to consider the issue of equity shares of the company to the shareholders of the company on rights basis," the filing said.

Rights issue is an option for a company to raise additional capital by issuing new shares to the existing shareholders.

When contacted Reliance MediaWorks spokesperson declined to share details, stating it will be announced only after the board meeting.

The company scrip closed at Rs 122.35 per share, down 2.28 per cent from the previous close on the Bombay Stock Exchange.