RIL to acquire 2.52 crore shares in Balaji Telefilms for Rs 413.28 crore

Reliance Industries (RIL) has decided to acquire 2.52 crore shares in Balaji Telefilms for Rs 413.28 crore through a preferential issue. These shares constitute 24.92% of the post-issue paid-up capital of Balaji Telefilms and the transaction is expected to be completed in 45 to 60 days.

The board of directors of Balaji Telefilms in its meeting held on 20 July 2017 considered and approved an investment by RIL through a preferential issue of 2.52 crore shares at Rs 164 each, aggregating to Rs 413.28 crore, subject to necessary shareholder and other approvals, Balaji Telefilms informed the exchanges.

Balaji is one of India's leading entertainment content producer operating across television, movie and digital platforms. The company has produced some of the best television serials in the country including the famous K series of daily soaps such as Kyunki Saas Bhi Kabhi Bahu Thi and Kahaani Ghar Ghar Ko.

The company has recently launched ALTBalaji, a multi-device subscription video on demand platform, which offers original, premium and exclusive content for a global digital audience and in a short span post its launch has garnered over 4 million downloads across 80 countries.

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 a strong impetus to RIL's focus on becoming India's content powerhouse, the company said, adding that Axis Capital acted as the sole investment banker for this transaction.

"We welcome RIL 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," Balaji chairman Jeetendra Kapoor said.

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, Kapoor added.