Zee Entertainment to Raise Rs 2,000 Crore via Equity Shares and QIPs

Zee Entertainment shareholders have approved a plan to raise Rs 2,000 crore through various routes, including equity shares and QIPs. This strategic move is expected to improve investor confidence and support potential business expansion. The special resolution was passed with 78.83% votes in favor.

Shareholders of Zee Entertainment have given the green light to a plan aimed at raising Rs 2,000 crore from the market. This capital will be garnered through issuing equity shares and qualified institutions placements (QIPs), according to a scrutiniser report filed by Zee Entertainment.

The resolution, which gained the approval of 78.83% of the total votes, allows the company to raise the funds in multiple tranches through private placements, QIPs, preferential issues, or a combination of these avenues. The exact investment areas for the raised capital have yet to be disclosed, but industry experts anticipate a portion will go towards business expansion.

This fundraising effort follows the recent termination of a merger deal between Sony Corporation and Zee Entertainment. Post-merger, Zee announced a strategic realignment overseen directly by the MD and CEO. Karan Taurani, SVP of Elara Capital, noted that this move could boost investor confidence depending on the quality of investors involved, although the specifics on fund utilization remain unclear.

(With inputs from agencies.)