×
You will be redirected back to your article in seconds

Cash Call Sinks Reliance MediaWorks Stock

Indian facilities group to raise $101 million from delayed rights issue

HONG KONG — Reliance MediaWorks, the Indian production services and cinema group, has seen its shares tumble for two successive trading sessions, after the company announced a heavily diluting rights issue to raise up to $101 million (INR6 billion).

After business hours on Monday the company finally set out the details of its long-awaited cash raising exercise. It revealed an offer of 13 new shares, to be sold at INR 40 each, for every 4 shares currently in existence.

The stock had traded at INR57 before the issue details, but has since twice slumped by the maximum daily trading range of 5% on the Bombay Stock Exchange. The shares closed Wednesday at INR 52.9.

RMW has sought to become a dominant player in digital facilities and now has an empire spanning: digital post-production services; content processing, image enhancement and restoration services; visual effects; 2-D to 3-D conversion services in the US, UK and India; and an 8-stage film studio in Mumbai.

In September last year it was announced that RMW would be the junior partner in a joint bid with China’s Beijing Galloping Horse conglomerate to rescue bankrupt US visual effect group Digital Domain.

But a continuing spate of losses at RMW has meant multiple cash raising exercises for the Indian company. The previous CEO Anil Arjun departed in Aug last year and was replaced by incumbent Venkatesh Roddam.

A rights issue had been approved by the RMW board as far back as 2011, but tricky stock market conditions and the company’s unhealthy outlook meant that it was postponed.

In the first quarter of this year RMW lost $26.1 million. In the second quarter, the three months to June, losses climbed to $37.1 million.

More Biz

  • Phil McIntyre Steps Down as Roc

    Phil McIntyre Steps Down From Roc Nation Management, but Remains Affiliated With Company

    Phil McIntyre has stepped down as president of Roc Nation Management, but his PhilyMack management company remains affiliated with Roc, a source close to the situation tells Variety. PhilyMack, which McIntyre founded in 2006, partnered with Roc Nation in 2015. The source stressed that McIntyre’s role at Roc Nation Management  — whose clients include Rihanna, [...]

  • Harvey Weinstein Trial

    Ben Brafman Drops Out of Harvey Weinstein Rape Case

    Harvey Weinstein has officially parted ways with defense attorney Ben Brafman, releasing a joint statement Thursday announcing the move. Weinstein had clashed with his defense attorney over strategy in his rape and sexual assault case. The pair issued a statement saying their parting was amicable, and that Brafman would cooperate fully with Weinstein’s new attorneys. [...]

  • Netflix - Apple TV

    Netflix Turns in Record Q4 Subscriber Gains, Price Increase Weighs on U.S. Forecast

    Netflix is beating Wall Street expectations for international subscriber growth — but its recently announced price increase in the U.S. may have put a damper on its momentum in the States. For the fourth quarter of 2018, Netflix reported 1.53 million paid net adds in the U.S. and 7.31 million internationally, to end the year [...]

  • Heather Parry Live Nation

    Live Nation Investigation of Heather Parry Also Targets Leakers (EXCLUSIVE)

    Over the past two weeks, the law firm of Paul Hastings LLP has been probing allegations reported by Variety last month that Heather Parry, the head of Live Nation Productions, had verbally abused employees and used offensive language in the workplace. But the lead investigator, Elena Baca, seems to be just as interested in uncovering [...]

  • Leslie Moonves

    Leslie Moonves to Pursue Arbitration for His $120 Million Severance From CBS

    Former CBS Corp. chairman-CEO Leslie Moonves will pursue an arbitration claim to fight CBS for the $120 million severance that he was denied last month when the company’s board of directors determined he was fired for cause. Moonves was ousted in September after multiple women came forward with allegations of sexual misconduct against the longtime [...]

  • A view of the SK Telecom

    Korean OTT Players, SK Telecom Join Forces to Compete Against Netflix

    South Korea’s three major broadcasters KBS, MBC and SBS have joined forces with the country’s leading telecom firm, SK Telecom, to launch a new video streaming platform. The move is regarded as a defensive reaction against the growing influence of foreign competitors, lead by Netflix. The broadcasters already jointly own Pooq, with MBC and SBS [...]

  • David Lubliner Moves to UTA From

    Veteran WME Agent David Lubliner to Join UTA

    William Morris Endeavor agent David Lubliner is departing the company for a post at United Talent Agency, individuals familiar with the move told Variety. The parting of ways was amicable, the insiders added. Lubliner was a veteran in WME’s motion picture literary department. Rumors of his exit had been floating since Hollywood reopened for the new [...]

More From Our Brands

Access exclusive content