New Delhi: Zee Entertainment Enterprises Limited (ZEEL) has announced plans to raise up to Rs 2,000 crore, according to a filing with the stock exchange on Thursday. This decision received in-principle approval from the company’s board earlier today, signaling a significant strategic move for the media conglomerate.
The funds will be raised through the issuance of equity shares or other eligible securities, potentially including convertible or non-convertible instruments. ZEEL is considering various methods for this capital raise, such as private placements, sales to qualified institutional buyers, and preferential issues.
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This announcement comes in the wake of Sony India’s cancellation of a $10 billion merger agreement with Zee in January 2024, as well as the termination of Zee’s $1.4 billion cricket rights deal with Disney Star in 2022, according to Reuters. These developments have highlighted the need for ZEEL to bolster its financial flexibility and explore new growth opportunities.
In its official statement, ZEEL said, “The Board of Directors of the Company at its meeting held today has, inter-alia, considered and given its in-principle approval for raising funds by way of issuance of equity shares and/or any other eligible securities (convertible/non-convertible) through permissible modes in one or more tranches, including but not limited to a private placement, a qualified institutions placement, preferential issue, or any other method or combination of methods, provided that the aggregate amount to be raised by issuance of such securities shall not exceed Rs 2,000 crore.”
The company emphasized that this strategic financial move is intended to enhance its ability to pursue future growth opportunities in the rapidly evolving media landscape.
Previously, ZEEL had indicated plans to raise funds through the issuance of equity shares and other mechanisms, including sales to qualified institutional placements (QIPs). This new fundraising initiative marks a pivotal step in Zee’s strategy to navigate the competitive media industry and invest in future projects.
As ZEEL moves forward with these plans, investors and industry analysts will be closely watching how the company leverages this new capital to strengthen its market position and drive long-term growth.
