Shareholders reject Zee’s warrant issue

Zee Entertainment’s proposal to issue fully convertible warrants to its promoters for Rs 2,237 crore failed to secure the required shareholder majority at its extraordinary general meeting (EGM) held on Thursday. The outcome has come as a huge setback for the promoters who were looking to hike their stake in the company from 3.99% to 18.39% and stay invested in the company for the long term.

The special resolution, which came up for voting at 11 am in the morning, fell short of the 75% threshold required to clear the proposal, with approximately 60% of shareholders supporting the resolution, while 40% voting against it.