Zee board backs promoter stake expansion to 24%

Mumbai: Zee Entertainment Enterprises Ltd’s board has approved a proposal to raise up to ₹3,143.5 crore through the issue of warrants to Sunbright Mauritius Investments Ltd, a promoter group entity. Upon conversion, this could increase the promoter group’s shareholding to nearly 24% from the current 3.99%, subject to shareholder and regulatory approvals.

Under the proposal, the company will issue up to 24.95 crore fully convertible warrants to Sunbright Mauritius Investments at ₹126 per warrant, raising up to ₹3,143.5 crore. The promoter group entity will pay ₹31.50 per warrant, or 25% of the issue price, upfront, with the remaining ₹94.50 per warrant payable upon conversion. The warrants may be converted into equity shares in one or more tranches within 18 months from the date of allotment.