Reliance makes THIRD cash call

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Corporate News

The board of Reliance MediaWorks has given its approval to the facilities and theatres group's third fund-raising exercise on the year.

In a statement the company said that it has authorised a INR600 billion ($110 million) rights issue to existing shareholders. It did not provide details of price, entitlements or timing. But it said that the proceeds would reduce the company's accumulated debts.

Only last week RMW announced a similar sized cash injection and share sale to an unnamed private equity investor involving the digital facilities operations which have now been relocated in a separate RMW subsidiary company.

Last year the board approved a rights issue that might have brought in $130 million of fresh capital, but financial market conditions and mounting losses made that a difficult proposition. Instead, it raised $57 million in April 2012 through a private placing of preference shares.

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