Reliance Media up 4% as rights share issue okayed

Shares of Reliance MediaWorks, a Reliance ADA Group company, surged nearly 4 percent to Rs 60.50 after the company said its board has approved raising up to Rs 600 crore through rights share issue.

The company will decide the pricing and timing of the issue in the coming days, a Reuters report said.

It will utilise the funds to pare debt, the report said.

[caption id=“attachment_390438” align=“alignleft” width=“380”] Reuters[/caption]

A week earlier, the company had said it has signed a non-binding term sheet and was in talks with an international private equity fund to raise Rs 605 crore.

It said the due diligence was on and the transaction will include a exchange of a substantial minority stake.

Shares of the company had surged 10 percent reacting to the news.

The company would use the money to pay off debt and expand operations, according to media reports.

Reliance MediaWorks, which is engaged in theatre distribution and television production unit, had reported a net loss of Rs 518 crore for the last financial year.