ZEEL board approves ₹2,237 cr fund infusion via preferential allotment to promoters

Zee Entertainment Enterprises Ltd. (ZEE) has approved the issuance of up to 16.95 crore fully convertible warrants to its promoter group on a preferential basis, priced at ₹132 per warrant, significantly above the SEBI-prescribed price of ₹128.58. The move is aimed at strengthening the company’s financial foundation and accelerating its strategic ambitions in the content and technology space.

The Board met twice today to deliberate on the company’s future growth roadmap. In the first meeting, investment bank J.P. Morgan India Pvt. Ltd., appointed as a strategic advisor, presented its evaluation of ZEE’s long-term growth initiatives and market positioning. J.P. Morgan’s review included suggestions to augment the company's balance sheet and position it for upcoming opportunities and market shifts.

Following this, the Board approved the ₹2,237 crore fund infusion by promoter entities. The capital raise is intended to support ZEE’s next phase of growth and will increase promoter shareholding to 18.39%, subject to shareholder approval.

“The Board has deliberated upon the various alternatives and conducted a thorough evaluation of the Company’s growth plans,” said R. Gopalan, Chairman of ZEE. “The investment by the promoters, coupled with the ambitious growth initiatives planned by the management team, will ensure that ZEE remains well-positioned to accelerate its strategic plans.”

Promoter group representative Shubham Shree added that the group had expressed its intention to increase its stake as early as May 1, when ZEE’s stock traded at ₹106.35, underscoring their long-term commitment to the company’s vision even at higher price levels.

This move follows a series of strategic decisions by the company in recent months. On May 1, the Board had approved the incorporation of three wholly owned subsidiaries to diversify ZEE’s business. Additionally, the company recently invested in "Bullet", a new-age content and tech start-up aimed at launching a micro-drama app targeting younger audiences.