15 Dec 2017
Live Post
Nokia, IIT-Delhi to Use AI to Make Networks More Reliable
Bitcoin triggers ponzi fear: Government in a huddle, plans crackdown
Minister Faces Angry Passengers On Delayed Flight. Air India Suspends 3
SC allows Vodafone to initiate second arbitration over $2 bn tax demand
INS Kalvari submarine affirms Make in India's giant strides: MDL
Over 600 fishermen of TN, Kerala still missing after cyclone
Dalit woman rape case: Kerala court awards death sentence to labourer

Reliance MediaWorks’ promoters to cough up Rs 314.76 crore to buy out public shares

MUMBAI: Reliance MediaWorks’ promoter group companies, Reliance Land Private Ltd (R-Land) and Reliance Capital Ltd (R-Cap), will have to cough up Rs 314.76 crore (Rs 3.15 billion) for buying out the shares that rest with the public.

Enticing public shareholders to exit so that it can soon delist from the stock exchanges, Reliance MediaWorks has fixed the final price at Rs 61 per share. This is up from the floor price fixed earlier at Rs 48.65 per share. As reported first by TelevisionPost.com, this would have meant that R-Land and R-Cap would have had to pay Rs 251 crore (Rs 2.51 billion) in pocketing back the shares that they do not own.

The final price of Rs 61 per equity share of Rs 5 each, determined through a reverse book-building process (RBP), is at a premium of 25.39 per cent over the floor price of Rs 48.65. The bid period was from 20 March 2014 to 26 March, in accordance with the SEBI Regulations 2009 (Delisting Regulations).

The public hold 51.6 million shares, equivalent to 26.70 per cent of Reliance MediaWorks’ paid-up equity capital.

Reliance MediaWorks’ entire net worth has been eroded due to consistent losses. In September, the existing shareholders had raised around Rs 588 crore (Rs 5.88 billion) through a rights issue. The funds were utilised to repay debt, besides supporting expansion plans. As on 30 September 2013, the company had long-term and short-term borrowings totalling Rs 1,526.04 crore (Rs 15.26 billion). It repaid debt to the tune of Rs 592 crore (Rs 5.92 billion) to R-Cap and other lenders.

Reliance MediaWorks operates a chain of multiplexes under the brand name of Big Cinemas. It also offers film production services.

Also Read:

Reliance MediaWorks’ promoters to spend upwards of Rs 251 crore in buying back shares