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Reliance Mediaworks jumps 8.6% on PE infusion deal

Our Bureau Chennai | Updated on March 12, 2018 Published on July 18, 2012

A Big Cinemas outlet in Tenali in Andhra Pradesh. The Anil Ambani-owned Reliance Mediaworks operates the BIG Cinemas chain.   -  THE HINDU

The Anil-Ambani controlled Reliance Mediaworks jumped 8.6 per cent on the BSE after it informed the exchanges that it has agreed to raise Rs 605 crore from a foreign private equity fund.

After opening at a high of Rs 66, the stock is trading (10.45 a.m. IST) at Rs 64 against the previous day's close of Rs 58.95, even as the BSE Sensex slipped 48 points.

Reliance Mediaworks announced that it has signed a term-sheet agreement with a ‘leading’ international private equity fund to raise Rs 605 crore. However, the company did not disclose the strategic investor’s name.

“The proposed investment is subject to completion of customary details such as due-diligence, definitive documentation, completion of subsidiarisation of the film and media services business, and approvals as may be necessary,” said the company statement.

The company posted a loss of Rs 114.23 crore for the financial year 2012 on a revenue of Rs 95.93 crore.

At the end of March 2012, the promoters’ holding stood at 63.15 per cent.

Reliance MediaWorks operates BIG Cinemas with over 550 screens spread across India, the US, Malaysia, Nepal and the Netherlands. Besides, it has a presence in film services — motion picture processing and film restoration and image enhancement.

Published on July 18, 2012
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