Breaking: ZEEL plans to infuse ₹2,237 cr into short-form app, sports content and 3D R&D

Zee Entertainment Enterprises Limited (ZEEL) has announced an Extraordinary General Meeting (EGM) scheduled for July 10, 2025, to seek shareholder approval for raising up to Rs 2,237.44 crore. The funds will be raised through preferential allotment of fully convertible warrants to its promoter group entities, Altilis Technologies Private Limited and Sunbright Mauritius Investments Limited.

ZEEL has estimated to spend Rs 1000 crore for investment in building new businesses such as an app for short form content, development of edutainment content for kids, developing and licensing of sport content properties, building of live content business, investment into expanding distribution segment of the business and investment into R&D for developing delivery of content into 3D format.

It will further infuse Rs 712.44 crore into inorganic expansion of business through M&A transaction – in the space of general entertainment including content and related tech companies and additional spends of Rs 525 crore for general corporate purposes.

Zee Entertainment Enterprises Ltd. (ZEE) had approved the issuance of up to 16.95 crore fully convertible warrants to its promoter group on a preferential basis, priced at Rs 132 per warrant, significantly above the SEBI-prescribed price of Rs 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 on June 16 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.

The company plans to issue up to 16.95 crore warrants, each priced at ₹132 and convertible into one equity share of ₹1 each. The proposed allottees, Altilis Technologies Private Limited and Sunbright Mauritius Investments Limited, are part of the Zee promoter group. A 25% upfront payment of ₹33 per warrant will be required, with the remaining 75% payable at the time of conversion within 18 months from the allotment.

According to the explanatory statement accompanying the notice, the proceeds will support ZEEL’s strategic growth initiatives. The funds will be directed towards scaling new businesses such as short-form content apps, children's edutainment, sports content development, and 3D content delivery R&D. Additionally, Zee aims to utilize the capital for potential mergers and acquisitions in the entertainment and content tech space and for general corporate purposes.

The statement to exchanges reads, "The Company intends to utilize the proceeds raised through the Preferential Issue (‘Issue Proceeds’) towards the following objects: Investment in building new businesses such as an app for short form content, development edutainment content of kids, developing and licensing of sport content properties, building of live content business, investment into expanding distribution segment of the business and investment into R&D for developing delivery of content into 3D format; Investment into inorganic expansion of business through M&A transaction – in the space of general entertainment including content and related tech companies."

“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.