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Reliance World Media listed on BSE and NSE; denies plans for IPO

By afaqs! news bureau , afaqs!, New Delhi | In Media
Published : December 04, 2009
The company's move to get listed on the two bourses is being seen as a move to raise money and focus on the third phase of radio licensing

Reliance World Media, owned by Reliance ADA Group (ADAG), is set to make its presence felt on the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE). Beginning today, December 04, it will be a listed company on the two nation-wide bourses.

The company's businesses comprise Big FM (FM Network), Big Street (out-of-home media), Big Digital, Big Reach (activation division), Big Events, Big Live (deals with audience aggregation through live entertainment events) and Big Rural (handling clients' marketing needs).

The listing of Reliance Media World gains significance, as radio operators await the government's announcement for the third phase of radio licensing. The third phase is expected to give radio operators an opportunity to bid for as many as 700 radio stations, largely in Tier II cities.

When queried about plans of coming out with an IPO, following the company's listing on BSE and NSE, the Reliance World Media spokesperson denied any immediate plans in this direction. Speaking to afaqs!, Tarun Katial, chief operating officer, Reliance Media World says, "We do not have any plans as of now with going ahead with an IPO. We are a big group; so, all that we have done is that we have listed ourselves as a separate company."

He adds, "An IPO will only follow once the government makes the guidelines for the third phase of radio licensing public. It's only then that one will analyse the individual markets and think of ways of raising money. Other verticals of the group, such as Big Live and Big Street, are stable and growing; and at present, there is no requirement for additional money for these businesses."

Katial shares that the radio division of Reliance MediaWorks has been demerged into Reliance Media World. As a result, the shareholders of Reliance MediaWorks have been allotted one equity share of Reliance Media World for every MediaWorks equity share held by them; while the promoter group's shareholding is 61.47 per cent. The move is as per the scheme of arrangement sanctioned by the Bombay High Court.

In October this year, film and media services company, Adlabs Films (Adlabs), part of Reliance ADAG, was rechristened to Reliance MediaWorks.

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