Anil Dhirubhai Ambani group media company, Reliance Broadcast Network, yesterday announced that its board had approved raising over Rs400 crore through equity sale to its founder and other investors.
''The new equity capital will substantially enhance the company's networth and augment its borrowing capabilities, thereby enabling greater participation in future growth opportunities,'' the company said in a statement.
The radio, out of home and marketing company will sell shares at Rs85 per share, at a 25-per cent premium on the past 26 weeks average market price. However the price still represents a substantial discount to the stock's last closing price. The company's stock was up 5 per cent to close at Rs110 yesterday.
The promoters, by way of share subscription will invest Rs250 crore with other investors raising Rs150 crore through acquisition of 1.9 crore shares.
''The equity infusion is a reflection of the strong confidence of our promoter group in the future growth prospects of the company,'' CEO Tarun Katial was quoted as saying in the statement.
The statement added that the capital infusion would result in a 300 per cent increase in shareholders funds at Rs568 crore.