Reliance Capital Ltd. and Reliance Land have announced to sell their entire equity stake in Reliance Broadcast Network Ltd., which operates under the brand name BIG FM Radio, to Music Broadcast Ltd.

Pursuant to the deal, Music Broadcast will initially acquire 24% equity stake of Reliance Broadcast Network by way of a preferential allotment for a total consideration of 2.02 billion Indian rupees. After that, Music Broadcast will acquire all of the remaining equity stake held by Reliance Capital and Reliance Land in Reliance Broadcast Network at a total enterprise value of 10.5 billion rupees.

Additionally, Reliance Capital will receive an estimated 1.5 billion rupees from the disposal of other assets of Reliance Broadcast Network which do not form part of the transaction with Music Broadcast.

In total, the transaction, which is subject to regulatory and other approvals, will reduce Reliance Capital's outstanding debt by an estimated 12 billion rupees, according to a company release.

EY India is acting as the exclusive investment banker for the transaction, while Phoenix Legal is acting as legal adviser for Reliance Capital.

As of May 24, US$1 was equivalent to 69.39 Indian rupees.