Reliance Media down in red
Reliance Media Works is down currently almost 1.5% at Rs.42.40, with an intra day high and low at Rs.42.70 and Rs.41.05 respectively. The company’s 52-week low stands at Rs.36.90.
The stock is down, apart from the general lackluster moods on the street, on news that it has extended the period of the subscription to the Issue by 15 days. Accordingly, now, the Issue will close on September 04, 2013.This is being taken as a signal that there were not too many biting the bait for the rights, forcing the company to extend the closing date.
The company plans to raise up to Rs 599 crore through this rights issue of shares to repay debt of Rs 450 crore to Reliance Capital and Rs 140 crore to other lenders. It is issuing 13 equity shares for every four shares held. The issue opened on 6th August. The company, promoted by Reliance Capital Ltd and Reliance Land Pvt Ltd is issuing up to 15 crore shares at a price of Rs 40 each, including a premium of Rs 35.