Reliance Mediaworks to make rights issue for raising Rs 500 cr

Reliance Mediaworks today said it will raise up to Rs 500 crore through an issue of equity shares to its existing shareholders.

In a filing to the Bombay Stock Exchange, the company said: "The board of directors has approved raising an amount not exceeding Rs 500 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, however, said the price, share entitlement ratio, timing of the issue would be decided later.

"The board of directors has empowered its committee to decide upon the terms and conditions including the price, share entitlement ratio, timing and other details and modalities for the issue, which shall be informed in due course," it said.

The company posted a consolidated net loss of Rs 328.86 crore for the year ended March 31, 2011. In the previous fiscal, the company's net loss was Rs 143.51 crore, the filing said.

The company's consolidated net sales for the period under review increased 10.42 per cent to Rs 781.46 crore, as against Rs 707.69 crore in 2009-10.

Reliance Mediaworks is engaged in the business of film/television production and distribution and theatrical exhibition.