Anil Ambani in talks for stake in Kaleidoscope

After Adlabs Films, The Reliance-Anil Dhirubhai Ambani Group (R-ADAG) is now eyeing Bobby Bedi's Kaleidoscope Entertainment in step with its plans for strategic acquisitions in the film and entertainment space.

Kaleidoscope Entertainment Managing Director Bobby Bedi said, "We are looking at raising capital to fund our foray into new media like mobile content as well as strengthening the television production division. We are considering various options, including an initial public offer and a stake dilution in favour of an equity partner. We have received proposals from four to five companies for stakes in Kaleidoscope."

R-ADAG sources said discussions were on with Kaleidoscope for a possible stake buyout. When contacted, a Reliance spokesperson refused to divulge details.

Bedi, too, refused to comment on whether he was in discussion with Reliance and did not disclose the names of the companies that had expressed interest in investing in his company.

The Rs 80-crore Kaleidoscope Entertainment is now a leading player in the film and television production space. Popular films produced by the company include Bandit Queen, Fire, Electric Moon, Saathiya, Mangal Pandey""The Rising, and Maqbool. The company also offers services to film producers for location and studio shoots in India.

Kaleidoscope, which ventured into production In 2004, is also into financing and marketing of films, television and entertainment software for national and international markets.

"R-ADAG's rationale for growth is either a complete buyout or acquiring a significant stake. Kaleidoscope Entertainment is a good property and can be developed into a major player in the content business," said an industry source.

Bedi's company is chalking out an ambitious expansion plan by diversifying into generation of mobile content. It has been in discussions with several telecom companies for this.