Reliance Capital rose 1.38% to Rs 397.05 at 11:16 IST on BSE after the company said that Reliance MediaWorks completed the transaction for sale of its multiplexes business to Carnival Cinemas, in the largest ever deal in the sector in India.
The announcement was made during market hours today, 4 August 2015.
Meanwhile, the S&P BSE Sensex was down 95.29 points or 0.34% at 28,091.77.
On BSE, so far 2.52 lakh shares were traded in the counter as against average daily volume of 4.43 lakh shares in the past one quarter.
The stock was volatile. The stock rose as much as 1.87% at the day's high of Rs 399 so far during the day. The stock fell as much as 0.99% at the day's low of Rs 387.75 so far during the day. The stock had hit a 52-week high of Rs 596.80 on 6 August 2014. The stock had hit a 52-week low of Rs 335.50 on 3 June 2015.
The stock had outperformed the market over the past one month till 3 August 2015, surging 8.54% compared with Sensex's 0.34% rise. The scrip had, however, underperformed the market in past one quarter, sliding 3.03% as against Sensex's 4.35% rise.
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The mid-cap company has equity capital of Rs 252.63 crore. Face value per share is Rs 10.
Reliance Capital said that the entire sales proceeds for sale of multiplex business have been duly received by Reliance MediaWorks (RMW) from Carnival Cinemas, and will be used to reduce Reliance Capital's leverage by about Rs 700 crore, through a combination of transfer of debt of RMW and infusion of cash proceeds.
RMW had announced sale of its multiplex business to Carnival Cinemas in December last year, and the transaction has now been closed upon receipt of all approvals. The deal excludes real estate owned by RMW at IMAX Wadala and other properties, which are intended to be separately monetized for an approximate value of Rs 200 crore, Reliance Capital said in a statement.
Sam Ghosh, Executive Director of Reliance Capital said that the transaction is in furtherance of Reliance Capital's stated objective of focusing purely on its core financial services businesses, significantly reducing exposure to non-core investments in the media and entertainment sector, and reducing overall debt.
On consolidated basis, Reliance Capital's net profit rose 52.4% to Rs 407 crore on 36.7% growth in total income to Rs 2527 crore in Q4 March 2015 over Q4 March 2014.
Reliance Capital, a part of the Reliance Group, is one of India's leading private sector financial services companies.
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