Reliance MediaWorks Ltd plans to raise up to Rs 599 crore through a rights issue of shares to repay debt, the Anil Ambani-led Reliance Group company said.
The company will issue 13 equity shares for every four shares held by the shareholders on a rights basis, the company said. The rights issue will open on August 6.
The company, promoted by Reliance Capital Ltd and Reliance Land Pvt Ltd, will issue up to 15 crore shares at a price of Rs 40 each, including a premium of Rs 35.
To retire debt
The proceeds from the rights issue will be used to repay Rs 450 crore of debt to Reliance Capital and Rs 140 crore to other lenders.
On Friday, shares of Reliance MediaWorks ended 0.91 per cent down at Rs 43.45 on the BSE. — ©Cogencis