Blog Post

Reliance Entertainment Planning An IPO?

A BIG IPO indeed: Reliance Entertainment, which houses all the media and entertainment properties of the Anil Dhirubhai Ambani Group (ADAG) is finalizing plans for an Initial Public Offering, reports HT. A company spokesperson however, has refused comment, so there’s no official confirmation.

While the company structure is not known, we believe Reliance Entertainment comprises of the following: casual gaming business Zapak, mobile gaming business Jump Games, radio business Big FM, social networking site Big Adda, Movie streaming and rental service Big Flicks, the yet-to-be-launched maps portal Big Maps (details here), film production and exhibition business Adlabs (a listed company), Animation studio Anirights, BIG Music & Home Entertainment, digital and online music co BIG Digital. I think the distribution ventures – IPTV and DTH – will be a part of Reliance Communications, but that’s quite a portfolio of Media and Entertainment ventures if we’ve got the structure right. There was a speculative story in ET a couple of months ago about Reliance Entertainment looking to place 5 percent with Private Equity firms, at a valuation of $1.5 Billion.

The Reliance Entertainment Draft Red Herring Prospectus, if it is filed, should be very interesting indeed.

Note: I’ve updated the list of companies that are a part of Reliance Entertainment, based on information from the company.

10 Responses to “Reliance Entertainment Planning An IPO?”

  1. Hi Nikhil,

    UNIVERSAL ARTS LIMITED(BSE code: 532378) is the market leader in acquisition of Film rights and merchandising…….Its selling rights to all Major TV Companies in India….. The companys results have not beenpublished for the first-half of 2008 and its is expected to release the results for the first nine-months in Coming April 2008, which when released would surprise even market leaders in Media Segment…..its a highly profit making company and due to this RELIANCE ENTERTAINMENT is eyeing this company to get in to its fold. The informal acquisition is over and only modalities have to worked out…….

    Further as told earlier in this forum its incorrect to say that BIG FM & ADLABS FILMS will not form part of RELIANCE ENTERTAINMENT……when you see the announcement dated 18-2-2008 to all stock exchanges the ADLABS has withdrawn the proposed DEMERGER of its Radion Division…. which is a clear indication that no divestment of FM Radio division will take effect…..its also the indication that this ADLABS will also eventually move to RELIANCE ENTERTAINMENT fold……in that event the valuations of RELIANCE ENTERTAINMENT would increase manifold……..

  2. HI Nikhil,

    UNIVERSAL ARTS has acquired nearly 7000 film Negative rights ( all Filmfare award winning films) and its rumoured that since all the ventures of RELIANCE ENTERTAINMENT need the film content on its own. (Like DTH, proposed BIG TV, Big Flicks etcs.,

  3. Hi Nikhil,

    I came to know from an insider source that a BSE Listed Co., Namely- UNIVERSAL ARTS LIMITED, is acquiring huge Film Negative Rights in all Indian Languages and the funding for this acquisition is being given by Reliance Entertainment and this UNIVERSAL ARTS is also proposed to come under the Umbrella of RELIANCE ENTERTAINMENT IPO, as a Film Content Acquirer and Marketer. Do you know about this.

  4. Nikhil Pahwa

    Pallavi: I've updated the above post based on information from Reliance Entertainment. It comprises of seven entities: Zapak, Jump Games, Big Adda, Anirights, BIG Flicks, BIG Music, and BIG Movies. Based on what we've been told, BIG FM is not a part of the Reliance Entertainment group.