ZEEL's board approves raising funds up to Rs 2,000 crore

According to its stock exchange filing on Thursday, June 6, 2024, the board of Zee Entertainment Enterprises Limited (ZEEL) has given its in-principle approval today to raise funds up to Rs 2,000 crore.

The company plans to raise money by selling shares or other types of securities. It will do this through private sales, sales to qualified institutions, and special issues.

This announcement follows Sony India's cancellation of its $10 billion merger agreement with Zee in January 2024. The company also decided not to go ahead with its $1.4 billion cricket rights deal with Disney Star in 2022, as reported by Reuters.

The company, in its statement, said, "We wish to inform that the Board of Directors of the Company at its meeting held today has, inter-alia, considered and given its in-principle approval for raising funds by way of issuance of equity shares and/or any other eligible securities (convertible/nonconvertible) through permissible modes in one or more tranches, including but not limited to a private placement, a qualified institutions placement, preferential issue, or any other method or combination of methods, provided that the aggregate amount to be raised by issuance of such securities shall not exceed Rs 2,000 crore."

“This will enable the company to enhance its strategic flexibility to pursue future growth opportunities in the evolving media landscape,” it added.

Earlier, the company said it plans to raise money by issuing equity shares and other methods, including selling to qualified institutions placements (QIPs).