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Zee Tele to raise $1.5 b via ADS issue

Our Bureau

MUMBAI, Feb. 25

THE board of Zee Telefilms Ltd (ZTL), at its meeting today, decided on the biggest-ever overseas offering by an Indian corporate to date.

According to an official press release, ZTL will raise funds ``up to $1.5 billions or by issue of up to 40 million equity shares, including premium, whichever is higher, by issue of American depository shares (ADS).''

The funds are meant to grow ZTL's existing lines of business and to develop related ones ``particularly in the Internet/new media sector.'' An extraordinary general meeting (EGM) of the company has been scheduled for April 10 to take necessary approvals.

Later, talking to Business Line, Mr. B.R. Jaju, Executive President (Finance), ZTL, said on the time of issue, that today's was an ``in principle decision'' taken by the board. ZTL will now have to get into the details, secure shareholders' and Governmen t approval here, besides complying with the US norms.

According to him, it is currently too early for pricing details of the ADS issue.

``We are in the process of finalising the lead managers,'' he said, adding that the intended use of ADS proceeds was completely separate from the earlier reported participation in the funding of the ICO-Global satellite communication platform by Agrani S atellite Communications (ASC), promoted by the ZTL Chairman, Mr. Subhash Chandra.

The ADS funds raised can be used for development plans both in India and abroad, covering ZTL and its fully-owned subsidiaries such as Siticable and E-Connect, Mr. Jaju said. Asked specifically if ZTL's growth plans included company acquisitions either h ere or abroad, he said that ZTL would look into the matter if it made sense.

The 40-million equity shares proposed for issue constitute about 10 per cent of ZTL's current equity base. The company's current paid-up equity capital is Rs. 38.84 crores.