Anil Ambani's Reliance Group raises Rs 14 bn by listing Codemasters on AIM

Anil Ambani-led Reliance Group has raised Rs 14 billion by listing its gaming unit Codemasters on London Stock Exchange’s AIM, a fund raising avenue for small-sized companies.

The initial public offering (IPO) of equity of Codemasters comprised primary fund raising worth Rs 1.5 billion and secondary share sale of Rs 15.5 billion by the Reliance Group and other shareholders. The IPO is a “major step forward in Reliance Capital’s deleveraging strategy through unlocking of value from group non-core entertainment assets,” the company said.

The offering was “significantly oversubscribed” and the listing happened at 30 per cent premium, the release added.  Shares were offered at 200 pence in the IPO and climbed to 260 pence during trading. “This is an example of value creation,” said Anmol Ambani, executive director, Reliance Capital.

Codemasters is currently valued at around Rs 32 billion ($475 million). Following the IPO, Reliance Group will hold a 29 per cent stake in the gaming firm, valued Rs 10 billion at current market rate.

Codemasters is a UK-based game developer. It holds licensing rights for games such as Formula 1. It has about 500 employees, with development studios in the UK and Malaysia. Reliance Capital’s shares ended at Rs 413, down 1.15 per cent on Friday.