Zee Entertainment Board Approves ₹2,237 Crore Capital Raise from Promoters

16 Jun 2025 , 09:44 PM

Zee Entertainment Enterprises is set to receive a significant capital boost from its promoter group, which has committed to invest ₹2,237.4 crore through a preferential allotment of fully convertible warrants. The media company announced that it will issue 16.95 crore warrants at ₹132 each, subject to shareholder approval.

This capital infusion, according to the company, is part of a broader plan to strengthen its financial foundation and drive long-term growth particularly in the areas of content innovation and digital infrastructure.

Pricing of the warrants stands above the SEBI-prescribed minimum of ₹128.58. The promoters have opted to pay a premium of ₹3.42 per warrant , a signal, many believe, of their long-term confidence in Zee’s strategic direction.

Once the transaction is completed, the promoter holding in Zee will increase to 18.39%, reinforcing their position at a time when the company is repositioning itself to adapt to shifting industry trends.

Chairman R. Gopalan described the proposal as a “strategic alignment of promoter commitment and business vision,” adding that the company is focused on unlocking new value through technology and creative expansion.

Shubham Shree, a representative from the promoter group, noted that the desire to raise their stake predates the current market rally. “We had already expressed our intent when Zee’s stock was trading near ₹106.35,” he said, underlining that the move reflects conviction, not opportunism.

The company believes the fresh capital will help stabilize its balance sheet and support new initiatives in India’s evolving entertainment space from digital-first content to platform investments aimed at building long-term shareholder value.

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