Zee Secures Shareholder Nod For Rs 2,000 Crore Fundraising

Zee Entertainment Enterprises (ZEEL) received shareholder approval to raise Rs 2,000 crore through the issuance of securities. The company was notified via a filing to the exchanges on Monday, 15 July.

According to the regulatory filing, 78.83 per cent of the total votes cast were in favour of the resolution, while 21.16 per cent opposed it. 

The company stated, “The remote e-voting process concluded today i.e., Monday, July 15, 2024, at 5:00 p.m. (IST), post which the Scrutinizer appointed for scrutiny of Postal Ballot process, Ms. Vinita Nair (Membership No. F10559), Senior Partner, M/s. Vinod Kothari & Co., Company Secretaries, has submitted her report on the results of the Postal Ballot. Based on the report of the Scrutinizer, we hereby inform you that the shareholders of the Company have duly passed the resolution for issuance of securities for an amount not exceeding Rs 2,000 crore with requisite majority.”

ZEEL intends to utilise these funds to enhance its flexibility and pursue growth opportunities. The company plans to raise the funds through the issuance of equity shares and/or other eligible securities.

The news positively impacted ZEEL's stock price, which closed at Rs 160.34 on the NSE on Monday, up by Rs 4.84 or 3.11 per cent over Friday's closing price.

This development follows ZEEL's statement on July 11 that its board of directors would meet on July 16 to discuss various fundraising options, including private placements, Qualified Institutional Placements (QIP), and preferential issues.

The company's decision to raise funds aligns with its board's earlier approval on June 6 to secure Rs 2,000 crore, aimed at strengthening ZEEL's strategic position and capitalizing on growth opportunities.