Zee Media Corporation Limited announced today that its board has approved the issuance of up to 13.33 crore warrants on a preferential basis to raise ₹200 crore. The warrants, priced at ₹15 each, will be convertible into an equal number of equity shares within 18 months of allotment.
The shares of Zee Media Corporation Limited were trading at ₹20.75 up by ₹1.88 or 9.96 per cent on the NSE today at 3.05 pm.
The company plans to issue these warrants to three foreign portfolio investors: UNICO Global Opportunities Fund Limited, AL Maha Investment Fund PCC - Onyx Strategy, and Ebisu Global Opportunities Fund Limited. These non-promoter entities will collectively hold about 15 per cent of Zee Media’s equity post-conversion, assuming full exercise of the warrants.
The board has called for an Extraordinary General Meeting on October 22, 2024, to seek shareholder approval for the warrant issue. Upon conversion, each warrant will result in one equity share with a face value of ₹1 and a premium of ₹14.
This move comes as Zee Media looks to strengthen its financial position in the competitive media landscape. The company’s share price and financial performance will likely be closely watched by investors in the coming months.