Zee promoters to raise stake via ₹2,237 crore preferential issue
The promoters of Zee Entertainment Enterprises Ltd are set to increase their stake in the company to 18.39% through a preferential allotment of fully convertible warrants worth ₹ 2,237.4 crore, as the media firm looks to shore up its financial foundation and accelerate its pivot to a content-tech-led growth strategy.
The Zee board, after two rounds of meetings on Sunday, approved the issuance of up to 16.95 crore warrants to promoter group entities at ₹ 132 per warrant, higher than the regulatory floor price of ₹ 128.58, according to a company statement.
The promoter group, led by Subhash Chandra, currently owns 4.28%.
Investment bank JP Morgan had earlier presented strategic alternatives and reviewed Zee's medium-term growth initiatives.
The move, subject to shareholder approval, aims to equip the company with long-term capital to fund its diversification and digital bets. It comes even as Zee continues to battle sluggish stock performance and navigates the fallout of its failed merger with Sony.
The warrant issue marks the first major promoter-led capital infusion into Zee in several years. The promoters had submitted their intent to enhance shareholding on 1 May, when the stock traded at ₹ 106.35, the company disclosed.
R. Gopalan, chairman of ZEEL, said the move will not only 'enhance the promoter shareholding' but also 'ensure their added motivation to work in line with the enhanced business plan.' He said the infusion will bolster Zee's balance sheet as it executes new strategic initiatives in the evolving media and entertainment space.
Shubham Shree, representing the promoter group, reaffirmed their commitment despite the higher pricing. 'The promoters are committed to the company and its business even at this higher price.'
Zee recently announced an investment in micro-drama app 'Bullet' and has launched three new subsidiaries to diversify its operations. In a May investor presentation, the company outlined its aim to become a content and technology powerhouse.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
4 hours ago
- Economic Times
Gold falls to one-month low as trade optimism spurs risk appetite
Gold prices declined to a one-month low. This happened because of reduced trade tensions between the United States and China. Synopsis Gold prices experienced a decline, reaching a more than one-month low due to easing U.S.-China trade tensions, which diminished safe-haven demand and encouraged investors to shift towards riskier assets. Adding to the market dynamics, President Trump's trade actions with Canada and comments on Federal Reserve interest rates influenced investor sentiment. Gold prices fell to their lowest in more than a month on Monday as easing trade tensions between U.S. and China dampened safe-haven demand and prompted investors to pivot toward riskier assets. ADVERTISEMENT * Spot gold was down 0.3% at $3,264.64 per ounce, as of 0055 GMT, after hitting its lowest level since May 29. * U.S. gold futures fell 0.4% to $3,275.30. * Asian shares firmed on Monday, while the benchmark 10-year Treasury yields edged higher. * The United States and China have resolved issues surrounding shipments of rare earth minerals and magnets to the U.S., Treasury Secretary Scott Bessent said on Friday, adding the Trump administration's various trade deals with other countries could be done by the Sept. 1 Labor Day holiday. * Meanwhile, U.S. President Donald Trump abruptly cut off trade talks with Canada on Friday over its tax targeting U.S. technology firms, saying that it was a "blatant attack" and that he would set a new tariff rate on Canadian goods within the next week. * The ceasefire between Iran and Israel after a 12-day conflict also appeared to be holding, further reducing safe-haven demand. ADVERTISEMENT * Stable geopolitical and economic conditions often reduce demand for gold as a safe-haven asset, while non-yielding bullion's appeal further wanes in a high-interest-rate environment. * Trump said on Friday he would not appoint anyone to head the U.S. Federal Reserve who would not lower interest rates. ADVERTISEMENT * Elsewhere, Senate Republicans pushed forward President Trump's sweeping tax cut and spending bill on Sunday in a marathon weekend session even as a nonpartisan forecaster said it would add an estimated $3.3 trillion to the nation's debt over a decade. * Spot silver was down 0.4% at $35.84 per ounce, platinum firmed 0.4% to $1,344.63, while palladium fell 0.6% to $1,127.23. DATA/EVENTS (GMT) 0600 UK GDP QQ, YY Q1 1200 Germany CPI Prelim YY June 1200 Germany HICP Prelim YY June. (You can now subscribe to our ETMarkets WhatsApp channel) Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY
Economic Times
5 hours ago
- Economic Times
India Inc's interest coverage ratio rises to a 3-year high on margin improvement , lower interest expenses
However, any improvement in interest coverage will also depend on trend in corporate profitability. Synopsis Indian companies showed strong financial health. The interest coverage ratio reached a 12-quarter high in March 2025. This was due to better profit margins and lower interest costs. Operating margins improved because of cheaper raw materials. Earnings before interest and taxes grew faster than interest expenses. Corporate profitability and lending rates will influence future interest coverage. ET Intelligence Group: India Inc's interest coverage ratio hit a 12-quarter high of 5.8% at the aggregate level in the March 2025 quarter helped by margin improvement and lower interest expenses. It has shown improvement in two quarters in a row after hitting a low of 4.8% in the September 2024 quarter. The ratio, which is obtained by dividing operating profit (EBIT) by interest expense, reflects a company's ability to service outstanding debt; higher the ratio, the better it is. The data pertains to a common sample of 2,658 companies that have declared results for each of the past 13 quarters excluding banking and finance companies. ADVERTISEMENT In March quarter, companies in select sectors reported improved profitability owing to benign raw material costs. The sample's operating margin rose by 110 bps year-on-year to 15.3%. "In Q4, operating margins improved, driven by a decline in input costs and easing inflation. Lower global crude prices and reduced raw material expenses supported profitability across several sectors," said Vinod Nair, research head, Geojit Investments. He said the trend enhanced operational efficiency, in manufacturing and consumption-linked industries. The sample's EBIT grew at a faster rate year-on-year than interest outgo in each of the two quarters to March 2025. EBIT rose by 12.7% vs 6.8% increase in interest outgo for March quarter. "Many companies benefited from a moderation in input costs, with the most significant savings reported in raw material expenses," said Vinit Bolinjkar, head of research, Ventura, adding that relief in commodity prices played a crucial role. Barring the September 2024 quarter, the sample's interest coverage ratio has remained above 5% in each of the quarters in the past two years. Interest outgo of corporates is likely to soften in the coming quarter given the reduction in lending rates in the economy. However, any improvement in interest coverage will also depend on trend in corporate profitability. (You can now subscribe to our ETMarkets WhatsApp channel) Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY
Economic Times
5 hours ago
- Economic Times
Foodlink F&B files papers for IPO
The company's businesses include events catering, casual dining restaurants and cloud kitchens, and banquets and integrated F&B (food and beverage) services. Synopsis The offer consists of a fresh issue of ₹160 crore and an offer for sale of 12 million shares. The company's businesses include events catering, casual dining restaurants and cloud kitchens, and banquets and integrated F&B (food and beverage) services. Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY
