In Short:
Zee Media Corporation Limited plans to raise ₹200 crore by issuing 13.33 crore warrants at ₹15 each, convertible to shares within 18 months. Three foreign investors will acquire about 15% equity. The company’s shares rose to ₹20.75. An Extraordinary General Meeting is set for October 22, 2024, for shareholder approval. This aims to strengthen Zee Media’s financial position.
Zee Media Corporation Takes Bold Step to Raise Funds
In an exciting announcement today, Zee Media Corporation Limited revealed that its board has given the green light to issue up to 13.33 crore warrants on a preferential basis, aimed at amassing a hefty ₹200 crore. Each warrant is priced at ₹15 and can be converted into an equal number of equity shares within a period of 18 months following their allotment.
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Stocks on the Rise
As of 3:05 PM today, Zee Media Corporation’s shares were making headlines themselves, trading at ₹20.75, marking an impressive increase of ₹1.88 or 9.96% on the National Stock Exchange (NSE).
Foreign Investors Eyeing Zee Media
The company has plans to distribute these warrants among three notable foreign portfolio investors: UNICO Global Opportunities Fund Limited, AL Maha Investment Fund PCC – Onyx Strategy, and Ebisu Global Opportunities Fund Limited. Once the warrants are fully exercised, these non-promoter entities are expected to collectively hold approximately 15% of Zee Media’s equity.
Upcoming Extraordinary General Meeting
To secure shareholder approval for this significant warrant issuance, the board has scheduled an Extraordinary General Meeting (EGM) for October 22, 2024. Upon need for conversion, each warrant will translate into one equity share, which will possess a face value of ₹1 and an added premium of ₹14.
A Strategic Move in a Competitive Market
This strategic maneuver aligns with Zee Media’s objective to fortify its financial foundation in a fiercely competitive media landscape. Investors will undoubtedly be keeping a keen eye on the company’s share prices and overall financial trajectory in the months to come.
