Flashed Yesterday: Reliance Industries acquires stake in Balaji Telefilms for Rs 413.28 crore
Reliance Industries will acquire equity stakes in Balaji Telefilms amounting to Rs413.28 crores
Reliance Industries is acquiring Balaji Telefilms’ 2,52,00,000 equity shares at Rs 164 each, aggregating to Rs413.28 crores. The Board of Directors of Balaji Telefilms Limited in a meeting today considered and approved this investment through a preferential issue of that many equity shares, subject to necessary shareholder and other approvals.
This transaction is expected to further accelerate the growing trend of media consumption ‘on-the-go’. The proceeds from the transaction would be utilized to further speed up content development initiatives, especially for ALT, thereby providing it with a strong ability to compete with other OTT service providers- both global and Indian. This investment will give strong impetus to the company’s focus on becoming India’s content powerhouse, the company said in a filing with the BSE.
Commenting on the transaction Jeetendra Kapoor, Balaji’s Chairman said, “We welcome Reliance Industries Limited as a partner in our growth journey towards becoming the preferred content producer for the Indian diaspora across all means of video consumption and across all geographies. This investment is a vote of confidence to the Company’s strategic move to own our IP and our viewers. I would like to congratulate Ekta and the entire Balaji team on this early success and am sure that they will continue to take the Company forward from strength to strength. I would also like to thank Axis Capital for its valuable and unwavering support over the years. They have visualized and facilitated this important investment which will help us become one of the leading content players globally.”
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Axis Capital Limited acted as the sole investment banker for this transaction.
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