Zee Entertainment shares surge over 8% ahead of July 16 board meet to consider fund raise

The company informed the stock exchanges on Thursday that a meeting of the Board of Directors will be held on July 16 to consider fundraising proposals through the issue of securities.

Zee Entertainment informed the bourses that the board will consider raising funds through the issuance of securities via all permissible modes in one or more tranches, including private placement, Qualified Institutional Placement (QIP), including but not limited to private placement, preferential issue, or other methods.

Zee Entertainment Enterprises Ltd shares opened higher at ₹149 apiece on the NSE and rallied as much as 8.29% to hit an intraday high of ₹159.39 apiece. However, the stock trimmed some of the early gains and traded at ₹157.63 apiece, up 7.1%, at around 1:40 pm. The shares closed 5.65% higher at ₹155.50.

This is the biggest single-day gain that the stock has seen since April of this year. Zee Entertainment shares have gained nearly 4% in the past 5 days while falling over 5% in the last month. The stock has dropped 43% so far in 2024.

Last month, on June 6, the Board of Directors of the company approved raising up to ₹2,000 crore through all possible routes. The company also said that the fund raise would help to enhance its strategic flexibility to pursue future growth opportunities.

In the quarter ended March 31, 2024, the company reported revenue of ₹2,185.29 crore, up 5.4% quarter-on-quarter from ₹2073.36 crore in the December quarter. The company’s net profit stood at ₹13.35 crore compared to ₹58.5 crore in the December 2023 quarter.