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Zee Entertainment Enterprises Ltd. has approved an investment of up to ₹116 crore in Phantom Digital Effects Ltd. (PhantomFX) as part of its strategy to strengthen its presence in the fast-growing Animation, Visual Effects, Gaming and Comics (AVGC) sector. The decision, cleared during a board meeting on April 17, 2026, involves funding through compulsorily convertible debentures (CCDs) via preferential allotment, to be executed in one or more tranches. The transaction remains subject to shareholder approval from PhantomFX, with internal clearances already underway. Through this investment, Zee aims to tap into PhantomFX’s global expertise, proprietary production workflows, and AI-integrated capabilities to enhance its content ecosystem. The partnership is expected to improve production efficiencies across animation and VFX-driven projects, enabling the creation of high-quality content across OTT originals, kids’ animation, gaming, interactive formats, and mythology and fantasy genres. CEO Punit Goenka described the move as a significant step toward scaling innovation and building immersive content intellectual properties with global appeal. He emphasized that PhantomFX’s strengths align with Zee’s vision of expanding across formats and geographies. Echoing this sentiment, Bejoy Arputharaj highlighted the long-term strategic value of the collaboration, noting that it will preserve PhantomFX’s operational independence while enhancing creative and technological capabilities through AI-powered workflows and global craftsmanship. Both companies also plan to co-develop original intellectual properties spanning OTT, gaming, and licensing segments. The collaboration is expected to unlock synergies in content creation and distribution, opening new growth avenues for both players. Shares of Zee Entertainment Enterprises closed at ₹81.04 on the NSE, gaining 1.05% at the end of the trading session. Source: CNBC