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Zee Entertainment To Raise Rs 2,237 Crore Via Warrant Issue To Promoter Entities
- Zee Entertainment Enterprises Ltd. plans to raise Rs 2,237 crore from promoter entities by issuing nearly 17 crore fully convertible warrants at Rs 132 apiece.
- The warrant price is above the SEBI-prescribed floor with a Rs 3.42 premium per unit paid by promoters voluntarily.
- Promoters are required to make an upfront payment of Rs 33 per warrant, equivalent to 25% of the warrant issue price.
- The warrants could amount to up to 15% of the share capital on a fully diluted basis post-conversion.
- The promoter entities can exercise their warrants within 18 months from the date of allotment.
- Zee Entertainment will hold an extraordinary general meeting on July 10 to seek shareholder approval for the warrant issue.
- The infusion of funds from promoters will strengthen Zee's financial foundation and support growth in its core business segments.
- JPMorgan advised Zee on this decision to raise funds and assessed the company's growth plans and strategic initiatives.
- Zee Entertainment stock settled 0.44% higher at Rs 137.95 apiece on the BSE after the announcement.
- The stock has fallen 14% in the last 12 months but rose 12% year-to-date.
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