Zee To Raise Promoter Stake To 18.39% Via ₹22.37 Billion Warrant Issue

Zee Entertainment Enterprises Ltd. on Monday said it will issue fully convertible warrants worth ₹22.37 billion to promoter group entities on a preferential basis, which will raise their stake in the company to 18.39%.

The board approved the issue of 169.5 million warrants at ₹132 apiece to Sunbright Mauritius Investments Ltd. and Altilis Technologies Pvt. Ltd., Zee said in an exchange filing. Each warrant will convert into one equity share, comprising ₹33 subscription and ₹99 exercise price. The promoter entities will pay the balance amount within 18 months of allotment.

The board took this step after consulting investment bank J.P. Morgan India Pvt. Ltd. on new growth strategies and market perception. On Monday, shares of Zee closed 0.4% higher at ₹137.91 on the NSE.

As of March 31, promoter shareholding stood at 3.9%, with Essel Media Ventures Ltd. holding 3.5%. The funds raised will help the company strengthen its core businesses and pursue value-accretive opportunities, Zee said.

A shareholder meeting is scheduled for July 10 to approve the preferential allotment.