Reliance's Adlabs to raise $125 mil
Proceeds to expand cinema business, launch BPONEW DELHI -- DreamWorks partner Reliance Anil Dhirhubhai Ambani Group subsidiary Adlabs Films Ltd. said Thursday that its board has approved a rights offer to raise $125 million by way of equity shares to the company's shareholders.
Adlabs Films runs India's largest theatrical chain and film services subsidiaries. The funds raised will be used "for expansion and growth opportunities including investment in various projects in India as well as overseas."
The plans include expanding Adlabs' Big Cinemas branded chain from 428 screens worldwide to more than 570 screens by next year; establishing a 1,200-member media business processing outsourcing company "specializing in content processing, image enhancement and restoration services"; setting up a 200,000-square-foot state of the art studios and sound stages at Mumbai's Film City complex; enhancing the inventory of film and broadcast cameras, lights and post-production infrastructure.
Adlabs' board has empowered its committee to decide upon the terms and conditions including the price, share entitlement ratio, timing and other details of the rights issue.
For the financial year ended March 31, 2009, Adlabs recorded total revenues of $152 million, reflecting a Compounded Annual Growth Rate of 80% in the last three years.
"We are in a significant growth trajectory and have made strategic investments for scaling up business operations to become the country's leading player across the entire film and media services value chain," Adlabs CEO Anil Arjun said. "The proposed rights offering will facilitate the company to build on its strengths in the film and media space and provide an opportunity to the existing shareholders to participate in the growth."