Priyanka Tiwari
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Suspense crime, Digital Desk : In a significant move to bolster promoter confidence and strengthen the company, the Board of Directors of Zee Entertainment Enterprises Ltd (ZEEL) has approved a proposal that could see the founding promoter group increase its ownership stake from the current 3.99% to as high as 26%.
The decision, made during a board meeting on June 18, involves the issuance of up to 12.87 crore share warrants on a preferential basis to an entity within the promoter group.
These warrants will give the promoter group the right to acquire an equivalent number of equity shares in the company at a later date. This strategic infusion of capital by the founders is seen as a major vote of confidence in the media giant's future, especially following the collapse of its proposed merger with Sony earlier this year.
The board has also given its in-principle approval for the company to raise further funds, although the specifics of this additional fundraising will be decided and announced at a later time.
The capital raised from the issuance of warrants will be utilized for the company's growth, including meeting capital expenditure requirements, funding operational needs, and other general corporate purposes. This move is expected to provide ZEEL with greater financial flexibility as it navigates the competitive media and entertainment landscape.
The proposal is now subject to the necessary approvals from shareholders and regulatory authorities.
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