Reliance ADAG is still pursuing multiplex operator Fame India Ltd. Reliance Capital Partners along with associated firms has disclosed that it picked an additional 0.54% in Fame India at a price ranging between Rs 78.33 and Rs 80 on Wednesday that would have cost it around Rs 1.5 crore. More importantly its stake has now inched up to 14.34%.
Although Reliance has already made an open offer to acquire more shares of the company and its gradual move towards 15% threshold is not critical, what is significant is that Reliance has crossed the halfway mark for garnering a crucial 26% stake in Fame. If it does manage to buy that much equity through a mix of open market operations and the open offer, it could block board resolutions and bring Inox to the negotiating table.
It may be recalled Inox snapped Fame by acquiring promoters Shroff family’s stake and thereafter hiking stake further to over 50% getting management control and a strong fence against a hostile bid by Reliance.
Reliance ADAG that had earlier offered a higher price to the Shroffs had alleged irregularities in the deal between Shroffs and Inox in a bid to wrest control of Fame, that would have made it an even stronger player in the domestic cinema exhibition business. Reliance ADAG owned Big Cinemas is already the largest multiplex operator in the country.