Reliance MediaWorks is raising around Rs.500 crore through QIP.

The funds will be used for its expansion plans.

Part of Anil Dhirubhai Ambani Group (ADAG), Reliance MediaWorks Ltd. provides film and entertainment services in India and internationally. It operates a cinema chain in India, US, Malaysia and in Netherlands, as well as operates a 6D theatre at Agra, India. It is also engaged in film and television content production activities.

Transaction Reference: ET

Reliance MediaWorks and Inox Leisurehave been battling with each other for months over another multiplex operator, Fame. Both have offered to buy out minority shareholders, though the rival offers are yet to be cleared by the Securities and Exchange Board of India (Sebi).

Inox already owns 51% of Fame but Reliance MediaWorks has contested that acquisition on the ground that a higher bid from it was wrongly rejected and thus has complained to Sebi about a transaction in which the promoters of Fame sold a 43.5% stake to Inox.

Inox is India’s third largest multiplex firm with 109 screens, while Fame has 95. Reliance MediaWorks runs 246 screens, so the owner of Fame would become the unrivalled market leader.

The multiplex war began in early March when Inox bought Fame promoters’ 43% stake in the company for Rs.44 a share and subsequently purchased another 7% for Rs.51 before launching the mandatory 20% open offer for public shareholders of Fame at Rs.51.

But Reliance MediaWorks claimed that Fame’s promoters had overlooked its offer and launched a hostile offer for 63% of Fame shares at Rs.83.4 a share.

Now it seems from the news sources that, Reliance MediaWorks has offered to buy a majority stake in Inox in an attempt to end a prolonged tussle between the two on Fame.

If Reliance MediaWorks manages to buy a majority stake in Inox, it will have to make the mandatory open offer to buy out 20% more at the same price.

Under the rules governing buyouts, an open offer to the shareholders of Fame may also be required.

Inox, if taken over by Reliance MediaWorks, will seek the Sebi permission to withdraw its previous open offer which is yet to get the market regulator’s go-ahead. Such an exemption is permitted under the Sebi takeover norms.

Earlier this year, Reliance Mediaworks has acquired UK- based iLab UK Ltd for an undisclosed sum.

Reliance MediaWorks already owns U.S.-based Lowry Digital that operates in the film production and restoration business. Reliance had teamed with In-Three Inc to form a JV studio for conversion of 2D movies into 3D, digital cinema quality ones in India.

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