Reliance may extend ₹ 750 crore loan to Indian Film Combine
In February, Reliance Industrial Investments Holdings Ltd had acquired a 65% stake in Indian Film Combine for ₹ 1,105 crore
Reliance Industries Ltd’s (RIL’s) investment arm, Reliance Industrial Investments Holdings Ltd (RIIHL), may lend up to ₹ 750 crore to the Indian Film Combine Pvt. Ltd for corporate purposes, two people familiar with the development said. In February, RIIHL had acquired a 65% stake in Indian Film Combine for ₹ 1,105 crore. “This loan, however, could be disbursed in tranches,” said one of the two people, requesting anonymity.
In an emailed response, a Reliance Industries spokesperson said: “RIL intimated stock exchanges on 16 February 2018 of its proposed investment in Indian Film Combine through its wholly-owned subsidiary RIIHL. Pursuant to this announcement, RIIHL has made and will be making investments in Indian Film Combine. No loan is proposed to be extended to Indian Film Combine.”
Reliance Industries had bought the 65% stake from Indian Film Combine’s existing shareholders—20% from the US-based Xander Group’s Mauritian arm for ₹ 340 crore and 45% from entities belonging to the promoter group of Reliance Industries—for ₹ 765 crore. The remaining is held by the Maker Group.
Indian Film Combine is setting up a drive-in theatre and hospitality precinct comprising a hotel, a retail mall and a club, built on 12 acres in Mumbai’s Bandra Kurla Complex.
Reliance Industries is also engaged in construction and development of a convention centre, a retail mall and an office space at the complex.
In its 16 February statement, RIL had said that together with the aforesaid Indian Film Combine project, it will create the city’s most attractive retail and entertainment destination, which will complement its world-class convention centre. RIL will be able to derive commercial and operational synergies to enhance its shareholder value, it added.
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