Zee Entertainment shareholders approve plan to raise ₹2,000 crore

The special resolution for "issuance of securities for an amount not exceeding ₹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 ₹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 Limited (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.

At 9:58 AM, shares of Zee Entertainment Enterprises Limited were trading 0.51% higher at ₹160.95 apiece on the NSE.