Zee Entertainment shares fall 4% after board approves ₹3,143.5 crore promoter fundraise
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Shares of Zee Entertainment Enterprises Ltd . (ZEEL) declined as much as 4% on Thursday after the company's board approved a capital infusion of up to ₹3,143.52 crore through a preferential issue of fully convertible warrants to promoter group entity Sunbright Mauritius Investments Ltd. At 11.40 am on the BSE, shares of the company were down 4.01% at ₹104.10 (4.35)
According to a regulatory filing, the board approved the issuance of up to 24.95 crore fully convertible warrants at an issue price of ₹126 per warrant, raising up to ₹3,143.52 crore. The company had earlier informed stock exchanges that it was evaluating a fundraise to support its strategic and business growth initiatives.
Under the proposed transaction, Sunbright Mauritius Investments will pay an upfront subscription amount of ₹31.50 per warrant, representing 25% of the issue price. The remaining ₹94.50 per warrant, or 75%, will be payable at the time of conversion.
The warrants will be convertible into equity shares within 18 months from the date of allotment. Each warrant can be converted into one fully paid-up equity share with a face value of ₹1 at an issue price of ₹126, comprising a face value of ₹1 and a securities premium of ₹125.
The company said the issue price represents a 16.33% premium to ZEEL's previous closing price and an 11.86% premium to the floor price calculated under the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.
The warrants may be converted either in a single tranche or in multiple tranches during the 18-month conversion period. Any warrants remaining unexercised after the deadline will lapse, and the subscription amount already paid will be forfeited, the company said.
Separately, ZEEL also announced that it has secured the exclusive broadcast and digital media rights for Germany's Bundesliga in India for the next five years, strengthening its sports content portfolio.
Beginning with the 2026-27 season, Bundesliga matches will be streamed exclusively on Zee5 and broadcast on the company's Unite8 Sports television channels. The agreement also includes match highlights and exclusive shoulder programming for Indian audiences.
The acquisition follows ZEEL's broader strategy to expand its sports offerings after its partnership with FIFA and is expected to enhance Zee5's premium content portfolio by adding one of Europe's leading football leagues.