Zee Entertainment Enterprises Limited (ZEEL) received shareholders’ nod to raise Rs 2,000 crore via the issuance of securities, the company informed via a filing to the exchanges on Monday, July 15. Out of the total votes cast, 78.83% were in favour of the resolution while 21.16% were against it.
The announcement was made after the market hours and the stock ended at Rs 160.34 on the NSE on Monday, up by Rs 4.84 or 3.11% over the closing price on Friday. “The remote e-voting process concluded today i.e., Monday, July 15, 2024, at 5:00 p.m. (IST),post which the Scrutinizer appointed for scrutiny of Postal Ballot process, Ms. Vinita Nair (Membership No. F10559), Senior Partner, M/s. Vinod Kothari & Co., Company Secretaries, has submitted her report on the results of the Postal Ballot. Based on the report of the Scrutinizer, we hereby inform you that the shareholders of the Company have duly passed the resolution for issuance of securities for an amount not exceeding Rs 2,000 crore with requisite majority,” Zee said in a regulatory filing.
ZEEL plans to invest these funds to enhance strategic flexibility to pursue growth opportunities in the evolving media landscape. The funds will be raised by issuance of equity shares and or/any other eligible securities.
On July 11, Zee Entertainment had informed the bourses that its board of directors will meet on July 16 to discuss fundraising options. These options include private placements, Qualified Institutional Placements (QIP), and preferential issues.
The announcement outlined plans for issuing securities in multiple tranches to enhance the company’s strategic flexibility and support future growth opportunities in the media industry. The disclosure followed the board’s previous decision on June 6 to approve raising funds amounting to Rs 2,000 crore, crucial for enhancing strategic options and seizing growth prospects.