Another of ADA reliance group's new industry plays that started off strong on business but weak on Capital, gets a second infusion just in time as Debt is recast after dividing the company into exhibition and movie media services.

Though the capital infusion is higly late and not short of brinsmanship, it gives the loss making business new lease like its radio and outdoor subsidiary reliance broadcast, which is well on its way to good profits with the new CBS foray. The difference in the businesses of each of the subsidiaries make it impossible to be run like a GE. 

The company made sales of INR 1.5 bln in the September quarter as last year same quarter but doubled losses to INR0.92 bln. The company will get PE stakes, probably angling for Reliance broadcast shares as per business outlook and a rights offer together gathering INR 10 bln 

Posted via email from The India Investment Post