Latest news with #SubhasChandra
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Business Standard
4 hours ago
- Business
- Business Standard
Zee shares jump on board's nod to infuse ₹2,237 crore via promoter warrants
Shares of Zee Entertainment Enterprise rose over 3 per cent on Tuesday after it approved raising over ₹2,237 crore from the preferential issue of convertible warrants. The Mumbai-based broadcaster's stock rose as much as 3.51 per cent during the day to ₹142.7 per share, the steepest advance since June 12 this year. The stock pared gains to trade 1.52 per cent higher at ₹140 apiece, compared to a 0.35 per cent decline in Nifty 50 as of 10:10 AM. The stock currently trades at the highest level since December 11 last year and has surged over 57 per cent from its March lows. The counter has risen 15.4 per cent this year, compared to a 5.2 per cent fall in the benchmark Nifty 50. Zee Entertainment Enterprises has a total market capitalisation of ₹13,447.27 crore. Zee to raise over ₹2K crore from preferential issue The company will raise over ₹2,237 crore from the preferential issue of convertible warrants, as its board of directors on Monday approved the promoters increasing their shareholding in the company. These warrants are proposed to be allotted to Altilis Technologies or Sunbright Mauritius Investments, according to the stock exchange filing. The promoters' shareholding in the firm will rise to 18.39 per cent from 3.99 per cent. Before this, the promoter and promoter group, led by Essel Group's Chairman Emeritus, Subhas Chandra, and his family, held 3.99 per cent of the shareholding in the company, according to the Bombay Stock Exchange (BSE). The Mumbai-based broadcaster also had another meeting with JP Morgan, an investment bank, it stated in its release, where the latter presented an assessment of the company's growth plans and strategic initiatives and also discussed the market perception of the stock and potential alternatives with the board, it said in an exchange filing. Kotak Securities on Zee fundraise According to Zee, the capital raise aims to strengthen the core business and potentially fund value-accretive growth opportunities, and increase promoter stake and accountability, Kotak Securities said in a note. "We have raised our target multiple to 13x (from 12x earlier) and our fair value to ₹127 (from ₹115), but maintain a 'Reduce' rating as we await clarity on the end-use of the growth capital, and a broad-based recovery in the linear TV advertising environment." Zee Q4 results The company reported a 14-fold increase in its consolidated net profit to ₹188.4 crore for the January–March quarter (Q4FY25) compared to the same period last year. The revenue from operations rose marginally by 0.7 per cent year-on-year (Y-o-Y) to Rs 2,184.1 crore in Q4FY25. The modest growth was largely due to a sharp 24.56 per cent decline in advertising revenue, which fell to ₹837.5 crore. Zee's failed merger with Sony Last year, Sony Group cancelled the proposed merger of its India media business, Sony Pictures Networks India, now known as Culver Max Entertainment, and Bangla Entertainment, with ZEEL. The failed merger could have created a $10 billion media entity. The merged entity would have been even bigger than JioStar, the joint venture created after the merger of the media business of Reliance and the India business of global media giant Walt Disney.
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Business Standard
15 hours ago
- Business
- Business Standard
Zee to raise over ₹2K cr from preferential issue of convertible warrants
Zee Entertainment Enterprises (ZEEL) will raise over Rs 2,237 crore from the preferential issue of convertible warrants, as its board of directors on Monday approved the promoters increasing their shareholding in the company. These warrants are proposed to be allotted to Altilis Technologies or Sunbright Mauritius Investments, according to the stock exchange filing. The promoters' shareholding in ZEEL will rise to 18.39 per cent from 3.99 per cent. 'In a second board meeting held later in the day, the board of directors considered the various alternatives discussed by JP Morgan and, after due deliberations, adopted and approved the enhancement of promoter shareholding by issuance of up to 16,95,03,400 fully convertible warrants to the promoter group entities on a preferential basis, at Rs 132 per warrant. The promoters of the company will participate in the fundraising exercise by investing Rs 22,37,44,48,800 (Rs 2,237.4 crore) for the company's next phase of growth, taking the total promoter shareholding to 18.39 per cent. The preferential issue is subject to shareholders' approval,' it said in a statement. Before this, the promoter and promoter group, led by Essel Group's Chairman Emeritus of ZEEL, Subhas Chandra, and his family, held 3.99 per cent of the shareholding in the company, according to the Bombay Stock Exchange (BSE). Its shares closed at Rs 138.25, up by 0.68 per cent, on NSE. Shubham Shree, on behalf of the promoter group, was quoted saying, 'The promoters submitted their desire to enhance their shareholding to the board on 1 May when the stock price was at Rs 106.35; however, they are committed to the company and its business even at this higher price.' The Mumbai-based broadcaster also had another meeting with JP Morgan, an investment bank, it stated in its release, where the latter presented an assessment of the company's growth plans and strategic initiatives and also discussed the market perception of the stock and potential alternatives with the board, ZEEL said. R Gopalan, Chairman, ZEEL, said in a statement that the board had deliberated upon the various alternatives discussed with JP Morgan and conducted a thorough evaluation of the company's growth plans. 'The board believes that the steps being implemented to enhance the promoter shareholding will ensure their added motivation to work in line with the enhanced business plan. The investment by the promoters, coupled with the strong, ambitious growth initiatives planned by the management team, will ensure that 'Z' (the new brand logo) remains well-positioned to accelerate its strategic plans to achieve its targeted aspirations,' he added. This comes a month after the company announced its rebranding process and a new phase of growth backed by its focus on content and technology, and its long-term vision around ZEEL's performance and profitability. These steps follow the company implementing several cost-cutting measures in FY25, after Punit Goenka, Chief Executive Officer (CEO), ZEEL, said in the earnings call for the January–March quarter that there is no room for cost-cutting right now for the expansion of its EBITDA margin. In June, the company also announced a strategic equity partnership with content and technology start-up Bullet, where ZEEL is expected to either invest or acquire a stake in the platform, it had stated in the stock exchange filing. Bullet developed India's first micro-drama application focused on fast-paced, creator-driven content through short-duration vertical format episodes targeted towards younger audiences.
Business Standard
17 hours ago
- Business
- Business Standard
Zee to raise Rs 2,237 crore via warrants; promoter stake to hit 18.39%
Zee Entertainment Enterprises (ZEEL) will raise over Rs 2,237 crore from the preferential issue of convertible warrants, as its board of directors on Monday approved the promoters increasing their shareholding in the company. These warrants are proposed to be allotted to Altilis Technologies or Sunbright Mauritius Investments, according to the stock exchange filing. The promoters' shareholding in ZEEL will rise to 18.39 per cent from 3.99 per cent. 'In a second board meeting held later in the day, the board of directors considered the various alternatives discussed by JP Morgan and, after due deliberations, adopted and approved the enhancement of promoter shareholding by issuance of up to 16,95,03,400 fully convertible warrants to the promoter group entities on a preferential basis, at Rs 132 per warrant. The promoters of the company will participate in the fundraising exercise by investing Rs 22,37,44,48,800 (Rs 2,237.4 crore) for the company's next phase of growth, taking the total promoter shareholding to 18.39 per cent. The preferential issue is subject to shareholders' approval,' it said in a statement. Before this, the promoter and promoter group, led by Essel Group's Chairman Emeritus of ZEEL, Subhas Chandra, and his family, held 3.99 per cent of the shareholding in the company, according to the Bombay Stock Exchange (BSE). Its shares closed at Rs 138.25, up by 0.68 per cent, on NSE. Shubham Shree, on behalf of the promoter group, was quoted saying, 'The promoters submitted their desire to enhance their shareholding to the board on 1 May when the stock price was at Rs 106.35; however, they are committed to the company and its business even at this higher price.' The Mumbai-based broadcaster also had another meeting with JP Morgan, an investment bank, it stated in its release, where the latter presented an assessment of the company's growth plans and strategic initiatives and also discussed the market perception of the stock and potential alternatives with the board, ZEEL said. R Gopalan, Chairman, ZEEL, said in a statement that the board had deliberated upon the various alternatives discussed with JP Morgan and conducted a thorough evaluation of the company's growth plans. 'The board believes that the steps being implemented to enhance the promoter shareholding will ensure their added motivation to work in line with the enhanced business plan. The investment by the promoters, coupled with the strong, ambitious growth initiatives planned by the management team, will ensure that 'Z' (the new brand logo) remains well-positioned to accelerate its strategic plans to achieve its targeted aspirations,' he added. This comes a month after the company announced its rebranding process and a new phase of growth backed by its focus on content and technology, and its long-term vision around ZEEL's performance and profitability. These steps follow the company implementing several cost-cutting measures in FY25, after Punit Goenka, Chief Executive Officer (CEO), ZEEL, said in the earnings call for the January–March quarter that there is no room for cost-cutting right now for the expansion of its EBITDA margin. In June, the company also announced a strategic equity partnership with content and technology start-up Bullet, where ZEEL is expected to either invest or acquire a stake in the platform, it had stated in the stock exchange filing. Bullet developed India's first micro-drama application focused on fast-paced, creator-driven content through short-duration vertical format episodes targeted towards younger audiences.
