Overview

• The board approved 16.95 crore fully convertible warrants at Rs132 apiece, with shareholder approval to be sought at a July 10 extraordinary general meeting
• The Rs132 warrant price exceeds the SEBI-mandated floor of Rs128.58, and promoters will pay a Rs3.42 premium plus a 25% upfront subscription
• Upon conversion, holdings of promoter entities Altilis Technologies and Sunbright Mauritius will rise from about 4% to 18.39% of the company
• The Rs2,237 crore infusion will bolster Zee’s cash reserves, adding to its Rs2,406 crore cash pile as of March and funding its push into content and technology ventures such as the Bullet partnership
• Zee’s stock rallied over 3% to a six-month peak and brokerages remain split on the outlook, with some sticking to Buy ratings and others at Neutral