Zee Entertainment Shares Surge Over 5% After Board Approves ₹2,000 Crore Fundraising Plan

The shares of Zee Entertainment on Thursday, June 6, surged over 5 per cent post the company's board of directors recent approval for raising funds.

According to the regulatory filing, the company, today, announced its plans to raise funds to the tune of Rs 2000 crores.

This entails the "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. 2000 crores and subject to such regulatory/statutory approvals, including approval of the shareholders, as may be required," added in the exchange filing.

The proposed fundraising, subject to regulatory and statutory approvals, aims to provide the company with the necessary financial flexibility to explore and capitalise on emerging growth opportunities in the media sector.

This recent decision comes after the company earlier this year in January cancelled its big USD 10 billion merger.

Shares performance

The shares of the company post the announcement surged over 5 per cent. At 3:30 PM IST, the shares of the company closed at Rs 154.65, up by 5.71 per cent.

Financial highlights

Zee Entertainment on May 17,2024 announced its Q4 earnings. The company's reported a profit of Rs 13.35 crore in Q4FY24 and its revenue increased by 3.3 per cent. The EPS (Earnings Per Share) decreased 57.33 per cent YoY and operating income increased 67.08 per cent YoY.