Reliance MediaWorks spurts as board approves delisting

Reliance MediaWorks surged 15.52% to Rs 53.60 at 13:50 IST on BSE, after the company's board of directors approved proposed delisting offer.

Meanwhile, the S&P BSE Sensex was up 79.93 points or 0.38% at 21,143.55

The stock surged on high volume. On BSE, so far 9.64 lakh shares were traded in the counter as against average daily volume of 1.02 lakh shares in the past one quarter.

The stock surged as much as 19.95% the day's high of Rs 55.65 so far during the day. The stock rose as much as 12.06% at the day's low of Rs 52 so far during the day. The stock had hit a 52-week high of Rs 72.63 on 17 January 2013. The stock had hit a 52-week low of Rs 36.90 on 7 August 2013.

The stock had underperformed the market over the past one month till 17 January 2014, falling 4.23% compared with the Sensex's 2.19% rise. The scrip had, however, outperformed the market in past one quarter, rising 5.69% as against Sensex's 3.17% rise.

The small-cap company has equity capital of Rs 96.60 crore. Face value per share is Rs 5.

Reliance MediaWorks during market hours today, 20 January 2014 announced that its board at the meeting held today, 20 January 2014, approved the proposed delisting offer. The company intends to seek the approval of shareholders of the company through postal ballot in terms of the SEBI Delisting Regulations, Reliance MediaWorks said.

Reliance MediaWorks said that the company's board of directors at its meeting held today, 20 January 2014, considered the proposal made by Reliance Land and Reliance Capital (Promoter Group Entities) to make a voluntary delisting offer (the Proposed Delisting Offer) to all the public shareholders of the company in accordance with the Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009, as amended (the SEBI Delisting Regulations).

Promoters collectively owned 73.3% stake in Reliance MediaWorks (as per the shareholding pattern as on 30 September 2013).

Earlier, Reliance MediaWorks had after market hours on Friday, 17 January 2014 announced scheduling of a board meeting today, 20 January 2014, to consider delisting of equity shares of the company from the Stock Exchanges.

Reliance MediaWorks reported consolidated net loss of Rs 121.99 crore in the quarter ended 30 September 2013, lower than net loss of Rs 231.32 crore in the quarter ended 30 September 2012. Net sales declined 13.38% to Rs 182.11 crore in the quarter ended 30 September 2013 over the quarter ended 30 September 2012.

Reliance MediaWorks is a film and entertainment services company.

Powered by Capital Market - Live News