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This is probably the largest deal in the Indian media and entertainment business. Ushodaya Enterprises Ltd (UEL), a large media and film production company owned by Ramoji Rao, has received $275 million in funding from private equity fund Blackstone. UEL is also raising bank financing of $190 million, which takes the total fund infusion to $465 million.

No further terms of the deal were disclosed. However, media reports speculate that Blackstone has picked up 26 per cent stake. The transaction is anyways subject to regulatory approval by Foreign Investment Promotion Board and the Ministry of Information and Broadcasting. Kotak Investment Banking was the only advisor to the transaction.

Ramoji Rao, Chairman of UEL, said in a statement, 'The company had access to several financing options, including an IPO; but we decided to go with Blackstone because we believe that at this stage of our growth we have an opportunity to create significant value by leveraging Blackstone's outstanding experience and track record in the global media sector.''

The Hyderabad-based company owns the third largest newspaper (Eenadu) and a television broadcasting network (Eenadu TV). UEL's parent Ramoji Group also owns Ramoji Film City which is Asia's largest studio.

Recently media company Nimbus Communications had raised $125 million from 3i, Cisco and Oman International Fund.