Daijiworld Media Network - Mumbai
Mumbai, Aug 1: Shareholders of Zee Entertainment Enterprises Ltd. have approved the company's proposal to issue fully convertible warrants to a promoter group entity on a preferential basis, paving the way for a Rs 3,143.5 crore capital infusion.
The approval was granted at the company's Extraordinary General Meeting (EGM) held on Thursday. Shareholders also approved resolutions to implement the "Truly Yours" Employee Stock Option Plan (ESOP) for employees of Zee and its subsidiary companies.
Under the approved proposal, Zee will issue 24,94,85,563 fully convertible warrants to promoter group entity Sunbright Mauritius Investments at Rs 126 per warrant. The investment of Rs 3,143.5 crore will increase the promoters' shareholding in the company to 23.79 per cent.
The company's board had earlier approved the preferential allotment of the warrants as part of its plan to strengthen the company's financial position.
Shareholders also cleared the implementation of the "Truly Yours" ESOP, under which 3,74,22,835 stock options with a face value of Re 1 each will be granted to eligible employees of Zee and its subsidiary companies in one or more tranches.
According to the company, the approvals will reinforce its financial foundation, support strategic growth initiatives and strengthen capabilities across its existing business segments. The ESOP scheme is also expected to align employee interests with the company's long-term growth and shareholder value.
Chairman R. Gopalan thanked shareholders for their support, stating that the approvals reflected their confidence in the company's management and strategic direction. He said the promoter fund infusion would enhance Zee's resilience, strengthen its competitive position and create greater value for stakeholders, while the employee stock option plan would encourage innovation, accountability and long-term growth.
The approvals provide Zee with significant promoter-backed capital at a time when media and entertainment companies are increasing investments in content, technology and distribution to strengthen their market position and develop new revenue streams.