Zee Entertainment Enterprises has allotted 20.94 crore convertible warrants to its promoter group Sunbright Mauritius at ₹126 per share. This allotment brings in ₹659.8 crore upfront. If all warrants are converted, Zee will receive ₹2,639 crore in total. Shareholders had earlier approved the preferential issue with 76.6% votes in favour. The promoter stake will rise to 17.9% after conversion, lower than the initially planned 23.79%.
The move follows regulatory hurdles. The Securities and Exchange Board of India had barred Zee and its promoters Punit Goenka and Subhash Chandra from accessing the securities market for 12 months. SEBI alleged misuse of a Hyderabad property for borrowings worth ₹726 crore and pointed to violations of PFUTP and LODR rules. The order created uncertainty over Zee’s fundraising plans. However, the Securities Appellate Tribunal granted relief on August 14 by staying SEBI’s order, allowing Zee to proceed with the preferential allotment.
On the market front, Zee shares closed at ₹107.46, down 0.5% in the last session. The stock has gained 2% in one month and 18.8% since the start of the year. The allotment strengthens Zee’s capital base but regulatory scrutiny remains a concern. Investors will closely watch promoter stake changes and compliance as the issue unfolds.
