The Anil D. Ambani led Reliance Group announced the successful listing of its leading edge developer and publisher of games, Codemasters, through admission of its shares to trading on the AIM market of the London Stock Exchange.
The 185 million (approximately Rs. 1,700 crore) offering, comprising a primary offering of 15 million (approximately Rs. 150 crore) and secondary sale of 170 million (approximately Rs. 1,550 crore) by Reliance Group and other management shareholders, received an enthusiastic response, and was significantly oversubscribed, attracting orders from leading institutional investors in UK and Europe.
The shares were offered at a price of 200 pence, and are now trading at a price of ~260 pence, reflecting an immediate premium of ~30% to the IPO price.
The Codemasters offering is a major step forward in the group strategy, as articulated at the Reliance Capital AGM last year, of unlocking value from media and entertainment investments, disposing off noncore investments, bringing down Reliance Capital's overall exposure to Reliance Entertainment, and deleveraging the Reliance Capital Balance Sheet.
Reliance Group has monetised an approx. 60% stake in the Company, and will continue holding ~29% post this offering.
Reliance has received net proceeds of Rs. 1,400 crore from the offering, realising substantial capital gains, and its residual ~ 29% stake in Codemasters is worth another ~Rs. 1,000 crore at the current market price.
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