The move is aimed at strengthening the company’s financial foundation and supporting its strategic growth plans in content and technology, the company said in an exchange filing.
The preferential issue, which awaits shareholder approval, will raise the promoters’ stake in the company to 18.39%. The warrant price is above the SEBI-prescribed floor of ₹128.58, with promoters voluntarily paying a ₹3.42 premium per unit.
J.P. Morgan advised Zee Entertainment on the strategic alternatives ahead of this decision and assessed the company’s growth plans & strategic initiatives. The fund infusion is expected to fortify the balance sheet and enable value-accretive opportunities in the evolving media and entertainment space.
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Chairman R. Gopalan said the move would align promoter motivation with the company’s enhanced business ambitions. Promoter representative Shubham Shree added that their intent to increase stake was expressed even when the share was at ₹106.35.
Ahead of the announcement, shares of Zee Entertainment closed at ₹138.25, up 0.68% on the NSE.
