Zee shareholders approve plan to raise Rs 2000 Cr

New Delhi: Zee Entertainment shareholders have approved a plan to raise Rs 2,000 crore from the market through various routes, including issuing equity shares and qualified institutions placements (QIPs).

The special resolution for "issuance of securities for an amount not exceeding Rs 2,000 crore" was passed by 78.83% of the total polled votes, according to a scrutiniser report filed by Zee.

"The shareholders of the company have duly passed the resolution for issuance of securities for an amount not exceeding Rs 2,000 crore with requisite majority," the regulatory filing said.

The remote e-voting period for this special resolution commenced on Sunday and ended on Monday, July 15, 2024, at 5 pm.

Zee Entertainment Enterprise (ZEEL) plans to raise in one or more tranches through a private placement, a qualified institutional placement, a preferential issue or a combination of them.

Though the company has not specified how it plans to invest the amount, experts expect a portion of this fund would be used for business expansion.

This is the first fundraising round after Sony Corporation terminated a deal to merge its two entertainment entities in India with ZEEL.

After the termination of the merger agreement, ZEEL announced a strategic realignment of its revenue vertical, which is being directly driven by the MD and CEO.

Commenting on the development, Elara Capital SVP, Karan Taurani, said, "This move will also improve investor confidence, depending on the nature and quality of investors.”

However, "we await more clarity on the potential utilisation of funds and the route/manner in which the funds would be raised", he added.