Zee Board approves raising up to ₹2,000 crore via issue of shares and QIP

"The Board of Directors of the Company...has given its in-principle approval for raising funds by way of issuance of equity shares and/or any other eligible securities through permissible modes in one or more tranches, including but not limited to a private placement, a qualified institutions placement, preferential issue, or any other method or combination of methods, provided that the aggregate amount to be raised by issuance of such securities shall not exceed ₹2000 crore," the company said in an exchange filing.

Zee said that the fundraising will enhance its strategic flexibility to pursue future growth opportunities in the evolving media landscape.

This comes after Sony scrapped its $10 billion merger in January this year. Since then, ZEE has taken several measures to reduce costs and mitigate losses, including a 15% reduction in its workforce. The company has also announced a strategic realignment of its revenue vertical, led by Managing Director and CEO.

Shares of the media company were trading 3.2% higher at ₹151 on the NSE. The market capitalisation stands at ₹14,508 crore.

The company had posted a consolidated net profit of ₹13.35 crore in the fourth quarter of financial year 2023-24. In the year-ago period, Zee had reported a net loss of ₹196 crore.

Consolidated total income for the March 2024 quarter was at ₹2,185.29 crore compared to ₹2,126.35 crore in the same period last year.