Zee Entertainment Shareholders Approve Plan to Raise ₹2,000 Crore

Zee Entertainment Enterprises Ltd. (ZEEL) shareholders have approved a plan to raise ₹2,000 crore through various financial routes, including equity shares and qualified institutions placements (QIPs). The special resolution, which allows the company to issue securities for an amount not exceeding ₹2,000 crore, was passed with 78.83% of the total votes, according to a scrutinizer’s report filed by Zee.

The remote e-voting process for the special resolution began on Sunday and concluded on Monday, July 15, 2024, at 5 pm.

ZEEL plans to raise the funds in one or more tranches through methods such as private placements, qualified institutional placements, preferential issues, or a combination of these options. While the company has not yet disclosed specific plans for the raised amount, industry experts expect it will be partially allocated toward business expansion.

This fundraising comes after the termination of a merger agreement between Sony Corporation and ZEEL to combine their entertainment businesses in India. Following the deal’s termination, ZEEL announced a strategic realignment of its revenue verticals under the direct guidance of its MD and CEO.

Karan Taurani, SVP at Elara Capital, commented on the development, stating, “This move could improve investor confidence, depending on the quality of the investors involved.” He added, however, that further clarity is needed on the fund’s potential utilization and the exact method through which it will be raised.

Source: Business Standard