Reliance Broadcast in talks with PEs,strategic investors

“We are talking to private equity players and strategic investors to grow our businesses,” RBNL CFO Asheesh Chatterjee said.

He said while PEs bring in funds,strategic partners can lead to content collaborations. Asked about the amount of funds the company is looking to raise,Chatterjee said: “We do not have any number until the talks mature”.

An announcement on the same is likely to come in less than an year’s time,he added but did not specify details such as the likely stake to be sold to PE firms.

As on quarter ended June 30,2011,the promoters have 63.87 per cent equity in the company. While the firm does not have any investments by PEs so far,it has formed joint ventures with US-based CBS Studios International and Europe’s RTL Group for entertainment TV channels in India.

For future growth RBNL is betting on radio and TV. “Radio (Big FM) currently contributes about 60 per cent to RBNL’s total revenues the proposed phase three offers huge opportunity,the plan is to invest between Rs 150 crore and Rs 200 crore for radio expansion,” Chatterjee said.

He said the firm would focus on buying fresh frequencies and could also consider an acquisition at a ‘right’ price. The union Cabinet had in July approved the FM Phase-III expansion and the e-auction of the licences is likely to kick off later this year.

In the first quarter,the company has increased its radio advertising rates to Rs 8,000 per ten second slot,up 20 per cent compared to last fiscal.

In case of television broadcast,RBNL is likely to launch a couple of new Hindi regional channels after the current fiscal.

At present the company broadcasts three English channels in joint venture with CBS and one Hindi entertainment channel — Big Magic.

“Through the joint venture with RTL,we have plans to launch two channels in multiple languages,with the first one to go on air in a few months,” he said.

In the first quarter of the current fiscal,the TV production business of the group — Big Productions — was also integrated with RBNL.

“The production business is doing very well with nine hours of programming on about a dozen TV channels,” he said.

For the quarter ended June 30,2011,RBNL’s consolidated net loss was Rs 29.1 crore and revenues stood at Rs 75.2 crore. RBNL’s scrips closed at Rs 85.50,up 1.79 per cent from previous close on the BSE.