Reliance Broadcast Network Ltd (RBNL), an Anil Dhirubhai Ambani group company, plans to raise Rs 400 crore through a preferential issue. The board of directors approved a proposal for capital infusion by the issue of equity shares to the promoter group and other investors.
The promoter group will subscribe to approximately 29 million shares, aggregating approximately Rs 250 crore, and investors approximately 19 million shares, aggregating Rs 150 crore. The preferential offer, subject to necessary approvals, will be made at Rs 85 per share, reflecting a premium of 25 per cent to the past 26 weeks’ average market price.
“The proposed infusion will lead to substantial increase of over 300 per cent in shareholders’ funds from Rs 167 crore to Rs 568 crore. It will enhance the company’s ability to actively participate in forthcoming growth opportunities in Phase III of radio bids, acquiring strategic inventory in the OOH (out of home, or outdoor) space and strengthen the company’s credit rating profile,” the company said in a statement to the exchanges.
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