The Indian film company Reliance MediaWorks has announced plans for a rights issue to raise Rs.500 crore (around £67million).
The rights issue will mostly be used to raise cash to pay of debts which have built up over the last few years as a result of various projects including 550 new BIG Cinemas worldwide.
Reliance MediaWorks made an operating loss of around Rs.164 crore (£22 million) in the first quarter of 2011.
Terms of the Reliance MediaWorks rights issue have not been determined yet. More soon.
Update – Right Issue Approved
The board have approved the rights issue. They plan to raise £67 million through the sale of new shares to existing shareholders.
The full terms of the Reliance MediaWorks rights issue are still to be announced, however, it is expected that the new shares will represent a good discount to the current trading price of the shares.