Zee Entertainment to raise up to Rs 2,000 crore

7 Jun 2024 , 02:40 PM

Zee Entertainment Enterprises Ltd’s board approved a plan to raise ₹2,000 Crore through diverse financial channels, aiming to enhance strategic maneuverability amidst a dynamic media landscape.
The company emphasized that the raised funds will empower it to capitalize on future growth opportunities but refrained from specifying the exact utilization.

The fundraising initiative is designed to unfold in phases, leveraging avenues such as private placement, qualified institutional placement (QIP), preferential issue, or a blend of these mechanisms. No timeline is provided for the fundraising process, signaling flexibility in execution.

Market response to the announcement is notably positive, evident in a 5.71% surge in Zee shares, closing at ₹154.65 on the NSE. At the time of writing, shares of Zee Entertainment Enterprises Ltd were trading at ₹155 which is a 1.27% gain than the previous close. The stock has witnessed 22% dip in the last one year, and 45% dip since the beginning of the year. 

This fundraising marks Zee’s first major financial move post the termination of its $10 billion deal with Sony Corporation earlier in the year.

Following the deal’s fallout, Zee undertook organizational restructuring, with MD and CEO Punit Goenka assuming direct oversight of critical verticals like domestic broadcast operations. The company’s operational focus now revolves around four core segments: broadcast, digital, movies, and music.

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