RBNL plans to raise Rs 4 bn, in talks with PE

MUMBAI: Reliance Broadcast Network (RBNL), the holding company of Reliance ADAG?s FM radio and broadcasting businesses, is once again looking to raise up to Rs 4 billion and is in talks with various private equity firms.

Talking to Indiantelevision.com, RBNL chief financial officer Asheesh Chatterjee said: "We are planning to raise up to Rs 3-4 billion this fiscal to fund expansion in radio and TV broadcasting businesses. We have appointed Yes Bank as one of our investment bankers and are in talks with private equity players."

RBNL?s debt stands at Rs 1.2 billion. "We will repay the debt completely after raising the funds," Chatterjee said.

In September 2010, the company had raised Rs 2.83 billion via preferential allotment of 33.32 million equity shares at a price of Rs 85 per share. The promoters had pumped in Rs 1.73 billion at that time, subscribing to 20.37 million shares. The remaining amount came from the investors.

The company had used Rs 2 billion out of that to partly repay debt while the remaining was spent on launching channels, said Chatterjee.

In the fresh fund-raising activity, the company is open to all instruments such as private equity, QIP and strategic investment. The equity of the company will be expanded and the promoters are not going to offload any stake, Chatterjee averred.

The promoter holding stands at 63.87 per cent, according to data provided by the company till 30 June 2011.

Apart from repayment of debt, the company needs funds to participate in the FM phase III auction. "Phase III will need growth capital and we will be very serious contenders at the auctions," Chatterjee said.

Shares of RBNL rose 3.3 per cent to close Monday at Rs 78.15 on the BSE.