Mumbai, Sep 27, 2010 (Calcutta Tube) Reliance Broadcast Network Ltd (RBNL), the media company from the Reliance-Anil Dhirubhai Ambani Group (ADAG), Monday said its shareholders had approved a proposal to raise over Rs.400 crore by allotting five crore shares to promoters and other entities.
The company got the shareholders’ nod at its extraordinary general meeting held Saturday at a likely price of Rs.85 a share, RBNL said in a regulatory filing.
At this issue price, the company would raise Rs.425 crore.
‘The object of the preferential issue is to augment long term resources to fund the growth plans of the company. The issue will not result in any change in control of the company,’ RBNL said in a statement.
Prior to the issue of shares, the promoters shareholding stood at 65.52 percent, while other shareholders stake was 34.48 percent.
Following the preferential issue, the promoter holding will come down to 63.35 percent and non-promoters stake will increase to 36.65 percent in RBNL.
The issued equity shares shall be locked in for a period of three years from the date of the allotment in case of the promoters and one year from the date of allotment for other investors, said the company in the filing.
Shares of Reliance Broadcast Network rose to an intra-day high of Rs.109.90 at the Bombay Stock Exchange, but ended the day with a 4.2 percent loss to close at Rs.102.55.
RBNL runs its businesses under the brand name BIG, spread in FM radio, experiential marketing, the Out of Home (OOH, or outdoor) and digital space and to-be-launched TV channels.
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.