Zee promoter group to raise stake to 18.39% with Rs 2,237 crore infusion

New Delhi: Zee Entertainment Enterprises Ltd (ZEE) on Monday announced that its Board of Directors has approved the issue of up to 16.95 crore fully convertible warrants to entities belonging to the promoter group on a preferential basis. The move, which will see promoters infuse Rs 2,237.44 crore at Rs 132 per warrant, will increase their stake in the company to 18.39 per cent, subject to shareholder approval.

The shareholding data, according to filings for the quarter ending March 2025, indicates that Zee Entertainment’s promoter and promoter group, i.e. Subhash Chandra and his son Punit Goenka, the company’s founder-chairman (chairman emeritus) and CEO, respectively, hold 3.99% of the company’s equity.

Earlier this year, the promoters increased their stake to 4.28% by acquiring an additional 2.7 million shares, demonstrating confidence in the company's long-term outlook.

The Board's decision follows presentations by investment banker J.P. Morgan India on Zee’s strategic growth roadmap and market positioning, underscoring the need for a robust financial foundation to support future investments and long-term value creation. The approved warrant price represents a premium to the SEBI-prescribed floor price of Rs 128.58 per share.

Company Chairman R. Gopalan said the Board had conducted a thorough evaluation of Zee's growth plans in consultation with J.P. Morgan. He stated that a higher promoter shareholding would ensure added motivation and alignment with the company’s enhanced business ambitions. Gopalan added that the infusion, alongside aggressive growth initiatives planned by management, positions Zee to accelerate its strategy across emerging content and technology domains.

Shubham Shree, representing the promoters, noted that the intent to raise stake was first communicated on May 1, 2025, when Zee’s share price stood at Rs 106.35, and that the commitment remains firm at the higher price.

This latest capital raise follows a series of steps by Zee to bolster its balance sheet and diversify its business. Earlier this year, the Board approved the creation of three wholly owned subsidiaries and appointed an investment banker to guide its expansion plans.

This latest capital raise follows a series of steps by Zee to bolster its balance sheet and diversify its businessZee has recently entered the micro-drama space with the Bullet app, part of its broader push to capture younger audiences and strengthen its digital and technology portfolio.

Zee, which claims to reach 1.3 billion viewers across 190 countries, said the fresh capital will fortify its position in a rapidly evolving media and entertainment landscape and help fund value-accretive opportunities.