RBNL to raise Rs 400 cr through preferential issue of shares
Reliance Broadcast Network Ltd (RBNL) on Wednesday said it will raise over Rs 400 crore through the issue of shares to promoters and other investors to fund its growth in the coming years.
By PTI |
MUMBAI: Anil Ambani-led Reliance Broadcast Network Ltd (RBNL) on Wednesday said it will raise over Rs 400 crore through the issue of shares to promoters and other investors to fund its growth in the coming years.
RBNL, formerly known as Reliance Media World, has a presence in various sectors like radio, experiential marketing and out-of-home and digital advertising. It recently made an entry into the television business through a tie-up with US- based CBS Studios International.
The board of directors 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, RBNL said in a filing to the Bombay Stock Exchange.
The promoter group will subscribe to approximately 2.90 crore shares, aggregating to approximately Rs 250 crore, and investors approximately 1.90 crore shares, aggregating to over Rs 150 crore.
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, it added.
The proposed infusion will also allow the company to actively participate in growth opportunities like Phase III of radio bids and acquiring strategic inventory in the OOH space.
"The media and entertainment sector is back on an exciting double-digit growth path. The equity capital infusion is a reflection of the strong confidence of our promoter group in the future growth prospects of the company," RBNL Chief Executive Officer Tarun Katial said.
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 per cent to the last 26 weeks average market price.
RBNL, formerly known as Reliance Media World, has a presence in various sectors like radio, experiential marketing and out-of-home and digital advertising. It recently made an entry into the television business through a tie-up with US- based CBS Studios International.
The board of directors 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, RBNL said in a filing to the Bombay Stock Exchange.
The promoter group will subscribe to approximately 2.90 crore shares, aggregating to approximately Rs 250 crore, and investors approximately 1.90 crore shares, aggregating to over Rs 150 crore.
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, it added.
The proposed infusion will also allow the company to actively participate in growth opportunities like Phase III of radio bids and acquiring strategic inventory in the OOH space.
ADVERTISEMENT
"The media and entertainment sector is back on an exciting double-digit growth path. The equity capital infusion is a reflection of the strong confidence of our promoter group in the future growth prospects of the company," RBNL Chief Executive Officer Tarun Katial said.
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 per cent to the last 26 weeks average market price.
Too busy to trade in stocks? Invest in Mutual Funds with ET Money!
Bookmark or read stories offline -
Download ET Markets APP
Download ET Markets APP
ADVERTISEMENT
