ZEEL eyes fundraising options post Sony merger cancellation

4 Jun 2024 , 12:42 PM

Zee Entertainment Enterprises Limited (ZEEL) announced on June 1 that it is considering raising funds.

The potential fundraising methods include the issuance of equity shares, private placement, qualified institutions placement, preferential issue, or a combination of these methods.

The Board of Directors will meet on June 6 to discuss and decide on the fundraising options. The fundraising proposal comes after Sony cancelled its $10 billion mega merger with Zee in January.

At the time of writing, shares of Zeel were trading at ₹132.85 which is a 15% dip than the previous close. The stock has seen a dip 33% dip in the last one year, and seen 53% since the beginning of the year.

Following the cancellation, Zee has implemented several measures to cut costs and reduce losses, including a 15% reduction in workforce and a remodel of the company’s leadership structure.

In the fourth quarter, Zee reported a profit of ₹13.35 Crore, compared to a loss in the same period the previous year.

The profit was driven by strong advertising demand and reduced expenses. Domestic advertising revenue for the quarter increased by nearly 11% year-on-year. The increase in advertising revenue was due to the continued recovery in the macro advertising environment and increased spending by FMCG clients.

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