Zee Falls 4% As Promoters Infuse Rs 3,144 Cr via Warrants

Shares of Zee Entertainment Enterprises fell nearly 4% on Thursday, even as the company unveiled a big promoter-backed fund raise plan

Zee’s board has approved raising up to Rs 3,143.52 crore by issuing 24.95 crore fully convertible warrants to Sunbright Mauritius Investments Ltd, a promoter group entity, at Rs 126 apiece.

The promoter family is essentially putting money in to grow its own stake in a company it already runs. Investors, it seems, aren’t reading it as a clear positive.

Sunbright doesn’t have to pay it all at once. Just 25% comes upfront, Rs 31.50 per warrant, to lock in the allotment.

The remaining Rs 94.50 is due only on conversion, and there’s an 18-month window for that, in one tranche or several.

The 25% already paid stays forfeited. Rs 126 works out to a 16.33% premium over Zee’s previous close, and 11.86% above what SEBI’s pricing formula would have set as the floor.

Sunbright holds zero shares in Zee right now. Full conversion changes that considerably, pushing its stake to as much as 20% of the expanded equity base.

The board had already approved a separate Rs 2,300 crore raise on 10 June, so this is the promoter group’s second major capital move this year.

Because Sunbright belongs to the promoter family, the transaction counts as related-party.

The board used the same meeting to clear ESOP 2026 too, an employee stock plan for up to 3.74 crore options at that same Rs 126 price. Both still need shareholder approval.

At 10:31 am, ZEEL is trading at Rs 104.62, down 3.41%, on the NSE. It’s a long way off its 52-week high of Rs 151.70 from last July, though still comfortably clear of its 52-week low of Rs 68.

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