US-based investor takes 3 per cent in ADAG firm

Updated on Feb 07, 2008 10:56 PM IST
At this price, the yet-to-be listed company would be valued at Rs 12,000 crore or $3 billion, reports Arun Kumar.
HT Image
HT Image
Hindustan Times | By, New Delhi

US-based investor George Soros has picked up 3 per cent stake in Reliance Entertainment for $100 million equivalent to Rs 400 crore. At this price, the yet-to-be listed company would be valued at Rs 12,000 crore or $3 billion. The deal underscores growing interest among foreign investors in India's booming entertainment business.

Reliance Entertainment is the flagship and entertainment company of Anil Ambani-run ADA Group. Through Reliance Capital and other group companies, ADAG also owns 58 per cent stake in Adlabs, a film processing and screening company that once belonged to well-known moviemaker Manmohan Shetty.

“We are delighted to have George Soros as a stakeholder in this company that operates in a high growth and high potential entertainment sector,” said a spokesman at Reliance Entertainment. When asked if the private placement was prelude to a public offering of shares in near future, he said: “We are far away from that stage and it will take some time before we take a call.”

Reliance Entertainment has three main verticals in entertainment space — Internet and new media, film entertainment, and also planning to venture in TV broadcasting. Under its Internet and New Media initiatives it has already launched a number of new ventures: Zapak - India's number one gaming portal, Big Adda - fast growing social network and social media venture with 1.25 million users, Big Flicks - online and offline movie rental business, and Jump Mobile - a mobile entertainment venture.

Reliance Entertainment recently signed up frontline directors like Farhan Akhtar -- for estimated Rs 300 crore for 6 films, Madhur Bhandarkar and Vivek Agnihotri, among others. It also acquired a controlling stake in India’s largest production studio ND Studio as well.


    Arun Kumar is Senior Assistant Editor with Hindustan Times. He has spent two-and-half decades covering Bihar, including politics, educational and social issues.

Close Story
Story Saved
Saved Articles
My Reads
Sign out
New Delhi 0C
Friday, August 12, 2022
Start 15 Days Free Trial Subscribe Now