Shares of Balaji Telefilms soared nearly 9 per cent today after Reliance Industries Ltd (RIL) board approved a plan to pick nearly 25 per cent stake in the company for about Rs 413 crore. The scrip zoomed 8.75 per cent to Rs 203 — its one year high — on the BSE. On the NSE, it surged 8.62 per cent to touch its 52-week high of Rs 202.80. Mukesh Ambani’s Reliance Industries Ltd (RIL) yesterday said its board approved the transaction to pick around 25 per cent stake in Balaji Telefilms by acquiring 2.52 crore shares for about Rs 413 crore.
In a separate filing, Balaji Telefilms said its board considered and approved an investment by RIL through a preferential issue of 2.52 crore shares at Rs 164 each, aggregating Rs 413.28 crore.The Mumbai-based media and entertainment firm said proceeds from the transaction will be utilised to further speed up content development initiatives, especially for its over-the-top content platform ALTBalaji, to help it compete with other global and India OTT service providers. The decision is, however, subject to Balaji Telefilms shareholders’ and other approvals.