The Hindu Business Line : Saregama announces 4:7 rights issue

SAREGAMA India Ltd, an RPG Enterprises group company, on Thursday announced a rights issue in the ratio of four equity shares for every seven shares held.

There would be a premium of Rs 35 on every equity share of the face value of Rs 10 each. The funds raised by the company by way of the rights issue would be Rs 24 crore, according to Mr Sanjiv Goenka, Vice-Chairman of RPG Enterprises.

Addressing a news conference here, Mr Goenka said the funds raised by way of the rights issue would be used to retire debts to the tune of Rs 13 crore and fund the company's business initiatives such as digitisation of catalogue and strengthening its home video and film businesses.

Mr Goenka said ICICI Securities has been appointed managers to the issue, which would be launched within the next 60 days after completion of the necessary formalities.

Unveiling the company's plans, he said, "Broadband will become a reality in India within the next 15 months. We want our content to be available on every carrier." Besides, in the films arena, Saregama has plans to produce two films in Hindi and two films in Bengali in 2005-06. The capital employed in the films business would be Rs 6-7 crore at any given point of time. He said that the company had recovered its investment in Tumsa Nahi Dekha, the first film produced by it.

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