Anil Ambani-led Reliance Broadcast Network (RBNL) is planning to raise $100 million (around Rs 450 crore) to fund its expansion plans for FM radio and television broadcasting.
In the third phase of FM radio (FM-III), RBNL is looking to bid for 90 to 100 FM stations. The company has also formalised 50:50 arrangement with the US media conglomerate CBS Studios International for its television foray. The announcement is expected in next few days.
?We are looking at a one-time fund raising for all our expansion plans. We are planning to raise $100 million. The board will take the final call on it, shortly,? Reliance Broadcast Network CEO Tarun Katial told FE. RBNL is expected to raise the fund via preferential allotment of shares.
Katial said the company is keenly awaiting for FM-III policy announcement before going for the fund raising exercise. This is because RBNL is the single-largest operator of private FM in the country with 45 operational FM stations and is looking to formulate its expansion strategy based on FM-III policy.
?Our first quarter results are encouraging. The share of revenues from tier-II and tier-III cities rose to 45% against 25-30% earlier. This shows that FM-III would be viable for us,? Katial said. For the quarter ended June 30, 2010, RBNL recorded a revenue of Rs 52.16 crore with the radio inventory utilisation standing at 64%.
On television foray with CBS Studios International, Katial said: ?Initially, we will start with three to four channels in the English entertainment space as it is witnessing growth due to digital addressable platforms like DTH.?
However, Katial clarified that the joint venture between RBN and CBS will only look after the non-news channels even though Reliance Big Broadcasting has applied for 33 licences for news channels.
The JV with CBS will be an Indian company that will have programming rights of CBS across India, Nepal, Bhutan, Sri Lanka, Bangladesh, the Maldives and Pakistan which could see further geographical spread.