RMW denies stake buying in Inox but its shares rise

RMW denies stake buying in Inox but its shares riseOn Friday the shares of Inox Leisure went up by as much as 20 per cent after there were news reports that said that Reliance MediaWorks (RMW) is going to buy 67 per cent stake in it.

But, later during the day Anil Ambani denied such reports and said, "We... deny any discussions by Reliance MediaWorks (RMW) or any offer by us to acquire any controlling stake in Inox Leisure Ltd." through a spokesperson.

Meanwhile, shares of Inox Ltd stayed in the upper circuit on the BSE and hit Rs. 86.30. Later, the shares finally closed at Rs. 80.35 which is 11.67 per cent up than the previous day.

Media reports had said that RMW had offered to buy majority stake in Inox so that it is able to end tussel between it and the smaller cinema chain, Fame India. Anil Ambani, reports said had offered to 67 per cent at Rs. 120 per share. This meant that the company would have got close to Rs. 740 crore.

Battle between the two has been going in for months for the multiplex operator, Fame India. Both the parties had offered to buy minority stake in Fame.