Promoter Shareholding
Zee Entertainment to issue fully convertible warrants to raise promoter group stake
This story was originally published at 21:40 IST on 16 June 2025
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--Zee Ent board OKs to issue up to 169.5 mln warrants at INR 132 per warrant
NEW DELHI – Zee Entertainment Enterprises Ltd. will issue fully convertible warrants for INR 22.37 billion to promoter group entities on a preferential basis which will raise the promoter shareholding to 18.39%, the company said in a stock exchange filing Monday. Zee Entertainment's board approved this strategic decision Monday on the back of consultation with investment bank J.P. Morgan India Pvt. Ltd. on new growth initiatives and market perception of the company.
The board approved the issue of 169.50 million fully convertible warrants at INR 132 per warrant to two promoter group entities – Sunbright Mauritius Investments Ltd. and Altilis Technologies Pvt. Ltd. Each warrant will be convertible into one fully paid-up equity share at an issue price of INR 132 which will include a premium of INR 131. Monday, shares of Zee Entertainment closed 0.4% up at INR 137.91 on the National Stock Exchange.
According to shareholding pattern data on BSE as on Mar. 31, Zee Entertainment's promoters held 3.9% stake in the company. Essel Media Ventures Ltd. held 3.5% stake and six other promoter entities held the remaining.
"J.P. Morgan was appointed by the Company, to review the strategic alternatives to be undertaken by the Company along with the targeted new initiatives, in line with its ambitions for the future," Zee Entertainment said in a press release Monday. The company said the infusion of funds from the promoters will enable it to fortify its core business segments and strengthen its financial foundation to explore value-accretive growth opportunities in the media and entertainment industry.
The issue price of INR 132 fully convertible warrant comprises subscription price of INR 33 per warrant and exercise price of INR 99 per warrant. The two promoter entities will only pay upfront the warrant subscription price of INR 33 per warrant. Within 18 months from the allotment of warrants, the two promoter entities will have to pay the balance INR 99 exercise price per warrant and simultaneously convert the warrants to equity shares.
Zee Entertainment said it will take shareholder approval for this decision by the board to allot fully convertible warrants to the promoter group on a preferential basis and has convened for that purpose a shareholders' meeting on Jul. 10. End
Reported by Rajesh Gajra
Edited by Deepshikha Bhardwaj
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