Increased promoter stake in Zee Entertainment to boost investor confidence tremedously, says Anil Singhvi
Anil Singhvi's view on Zee Entertainment corporate move: In line with its strategic ambitions for the future, ‘Z’ is taking necessary steps to identify and invest in new avenues for growth and capitalize on the emerging opportunities as a leading Content & Technology Powerhouse.
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02:48 PM IST
Zee Entertainment Enterprises Ltd. (ZEEL) has announced a significant financial move late Monday (June 16, 2025) for strengthening its position in the media industry. The company's Board of Directors has approved the issuance of up to 16.95 crore fully convertible warrants to promoter group entities on a preferential basis, priced at Rs. 132 per warrant.
This strategic decision aims to raise a total of Rs. 2,237 crore, enhancing the company's balance sheet and supporting its growth initiatives in the content and technology sectors.
"The Promoters of the Company will participate in the fund-raising exercise by investing Rs. 22,37,44,48,800 for the Company’s next phase of growth, taking the total promoter shareholding to 18.39%. The preferential issue is subject to shareholders' approval," added the company in an exchange filing.
Here's how Zee Business Managing Editor Anil Singhvi looks at the move:
The expert held that promoter buying additional stake in the media company is highly positiive. He added that it is the biggest positive corporate action after the deal with Sony did not go through.
The market guru added that increase in promoter stake in the entity from just 3.99 per cent to 18.4 per cent will boost investors confidence bountifully.
Additionally, the company's balance sheet will also get a support through additional capital worth Rs 2,237.
He mentioned that the company is debt free and cash flow is positive that is integral for the company's financial health and stability. Analysing the company's financial post the fund raise, Singhvi noted that the company's cash, bank balance and current investment on the move will increase to Rs 3,000 crore.
Further, he added that with the infusion of fresh funds, the company's competitors like Reliance and Disney will face tough competition.
He also stated that that strategic value, investments in new age segments will help fuel and spur growth
Zee Entertainment share price performane
On a year-to-date basis, the stock has gained over 16 per cent as against Nifty's run of just 5 per cent during the same period.
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