Radio City FM will take over Reliance / Big FM, Ambani sells stake for Rs 1,200 crore

Read Time:2 Minute, 4 Second

Reliance Capital is trying to reduce its debt by selling Big FM

Table of Contents

Anil Ambani is going to sell 92.7 Big FM stake to Radio City to improve the financial condition of Reliance Communications, which is in debt. Reliance Capital Ltd and Reliance Land are finishing their stake in Big FM. In this case, Radio City will take over 40 stations of Big FM. This deal will be in the Rs 1,200 crore. Radio City is a part of Jagaran Publications Limited Group’s company Music Broadcast Limited (MBL).

Reliance will sell remaining stations in second phase

Big 92.7 FM radio network operates 58 Radio stations across the country under the Reliance Broadcast Network Ltd (RBNL). Of this, 40 stations will be under Radio City, the remaining 18 stations will be sold in the second phase one by one. Reliance is expected to earn 150 crores from these 18 stations.

Hope to reduce debt more than 70% this year

The MBL will initially take a 24 per cent stake in RBNL, which will cost Rs 202 crores. After taking all the approvals, the company will take a rest stake of Rs 1,050 crore. Reliance Capital’s Chief Economic Officer Amit Bapna said that the debt of Reliance Capital will be reduced to around Rs 1,200 crore by this deal. He said that it is expected to raise Rs 6,000 crore by selling stake in Reliance Nippon Asset Management. Apart from this, the other way of raising the money is expected to reduce the debt of Reliance Capital to nearly 12,000 crore (70 percent of total debt) in the current fiscal.

Anil Ambani Group companies lose Rs 2,11,432 crore in 11 years

Anil Ambani Group chief Reliance Communications (RCom), the head of Anil Dhirubhai Ambani Group (ADAG), has begun the bankruptcy process. After the 2005 split, Anil Ambani got Reliance Infocomm (now Reliance Communications), Reliance Energy and Reliance Capital. At that time Reliance Communications was one of the biggest companies of the Anil Dhirubhai Ambani Group. In March 2006, Forbes described Anil Ambani as India’s third richest person with assets of more than 1 lakh crores. In March 2008, the market cap of all the companies of the ADA Group was Rs 2,36,354 crore. Since then, the sloping of ADA Group companies started. From March 2008 to 22 February 2019, Anil Ambani’s companies have lost about Rs 2,11,432 crore in about 11 years.