ZEE Entertainment Enterprises Ltd Approves ₹2,237 Crore Fundraising Plan Through Fully Convertible Warrants
In a bid to boost strategic growth, Zee Entertainment Enterprises Ltd (ZEE) has given its go-ahead for a ₹2,237 crore fundraising plan through the issuance of fully convertible warrants to its promoter group. The preferential allotment, priced at ₹132 per warrant, is above the SEBI-prescribed rate and will raise the promoter shareholding to 18.39%.
According to sources, the decision was taken after detailed discussions with investment bank JP Morgan India Pvt Ltd over several meetings held on Monday last week (June 16), where they presented an assessment of ZEE's growth plans and strategic initiatives. The presentations highlighted the need for boosting the company's balance sheet to prepare for future investments and capitalise on emerging opportunities.
After these deliberations, the Board approved the preferential issue of warrants, which, upon conversion, will increase the promoter group's shareholding in ZEE to 18.39 per cent. The promoters have committed to investing Rs. 2,237 crore in this fundraising exercise, reflecting their confidence in the company's strategic direction.
Zee Entertainment Enterprises Ltd Chairman, Mr. R. Gopalan stated, "The Board has thoroughly evaluated various strategic alternatives and believes that enhancing promoter shareholding will align their interests with the company's growth objectives. This move positions ZEE to accelerate its transformation into a leading content and technology powerhouse."
On the other hand, on behalf of the promoter group, Mr. Shubham Shree stated that "the promoters submitted their desire to enhance their shareholding to the Board on 1st May 2025 when the stock price was at Rs. 106.35, however, they are committed to the Company and its business even at this higher price".
The preferential issue is subject to shareholders' approval. If approved, the funds raised will be utilised to fortify ZEE's core business segments and explore value-accretive growth opportunities in the media and entertainment industry.
Earlier, on May 1, 2025, the Board of Directors had approved the incorporation of three wholly owned subsidiaries of the company in order to diversify and expand the current business operations.