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Informist, Thursday, Jul. 10, 2025

--Zee Ent shareholders reject proposal to issue warrants to promoters 

--Zee Ent: 40% shareholders vote against special resolution to issue warrants 

NEW DELHI – Shareholders of Zee Entertainment Ltd. have rejected a proposal to raise INR 22.37 billion via by issuing warrants to promoter group entities, the company informed exchanges Thursday. Barely 60% of the shareholders who participated in the voting were in favour of the proposal, lower than the 75% required in case of a special resolution. 

The board and the management of the company have noted that about 60% of the shareholders who participated in the voting process have expressed their support towards the resolution about the issuance of fully convertible warrants to promoter group entities, and are grateful for their support, the company's spokesperson said in a statement.  

"While the efforts being taken have augured well for the company, in order to further safeguard it from a future growth perspective, it is important to keep a sufficient war chest available in order to consistently build a strong foundation to address the rapid market shifts and outperform the fierce competition," the spokesperson said.

Zee's board had in June 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. Had the proposal gone through, promoters Subhash Chandra and and family's stake would've gone up to 18.39% from 3.99% currently.

While some investors and proxy advisory firms openly supported the fund raise, some raised red flags. According to media reports, at least three proxy advisory firms raised concerns about the pricing, rationale for raising funds through warrants, and the choice of instruments.

In an investor call, Chandra had claimed that the company needed the money to compete against companies who have ten times more money than Zee does. Further, Chandra said the promoters were neither pledging shares nor taking loans to fund their capital infusion.

For the March quarter, Zee Entertainment reported a consolidated net profit of INR 1.88 billion on a revenue of INR 21.84 billion. Thursday, the Mumbai-based broadcaster's shares closed 0.1% higher at INR 141.90 on the National Stock Exchange.  End

Reported by Anand JC

Edited by Saji George Titus

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