Reliance MediaWorks to raise Rs600 crore through rights issue

Film and entertainment service provider Reliance MediaWorks Ltd plans to raise up to Rs600 crore through a rights issue of equity to its shareholders.

The board of directors of the company, which met today, approved raising an amount not exceeding Rs600 crore by way of rights offer of equity shares to the company's shareholders, subject to necessary sanctions, approvals and applicable provisions of law, the company said in its filings with the stock exchanges.

Further, the price, share entitlement ratio, timing and other details and modalities for the rights offer will be decided in due course, the company said in its filings with the stock exchanges.

The company plans to utilise the funds so raised to substantially reduce the debt incurred in past acquisitions.

Over the past three years, Reliance Media Works has made strategic investments and scaled up business operations to become an end-to-end integrated service provider across the entire film and media services value chain.

Reliance MediaWorks is also in the process of spinning off its exhibition and film and media services division into a subsidiary company, in order to pursue growth opportunities and expand business. The spinoff of the business division will help raise funds for investment in the company's specific business verticals, the company said in its filing.