On June 6, Zee Entertainment Enterprises Limited (ZEEL) announced that its board has granted in-principle approval to raise up to Rs 2,000 crore through the issuance of shares or other eligible securities.
Following this announcement, Zee’s shares rose by 5 percent, trading at Rs 153.75 apiece on the BSE. The stock has seen a 12.5 percent increase over the past month.
Previously, Zee had indicated plans to consider fundraising on June 6 via equity shares issuance, private placement, a qualified institutions placement, preferential issue, or other methods, subject to necessary approvals.
This fundraising move comes after Sony scrapped its $10 billion mega merger with Zee earlier in January this year. In response, Zee has implemented various measures to cut costs and reduce business losses, including a 15 percent reduction in its workforce and a revamp of its leadership structure.
In its recent fourth quarter, Zee reported a profit of Rs 13.35 crore, recovering from a loss in the previous year, driven by strong advertising demand and reduced expenses. Domestic advertising revenue for the quarter increased nearly 11% year-on-year, supported by a recovering macro advertising environment and increased spending by FMCG clients.
