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Zee Entertainment’s ₹2,237 Crore Warrant Plan Secures Foreign Support Ahead of July 10 Vote

Overseas investors back the promoters’ convertible warrants plan with key domestic votes, including LIC’s, still undecided.

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Overview

  • Zee’s board approved issuing 169.5 million fully-convertible warrants at ₹132 each to promoters, raising ₹2,237 crore and lifting their stake to about 18.4 percent.
  • Foreign institutions such as Norges Bank Investment Management, Glass Lewis and CalPERS have endorsed the preferential allotment, strengthening its prospects.
  • Domestic proxy advisers Institutional Investor Advisory Services and InGovern remain opposed despite Stakeholder Empowerment Services reversing its stance to support the deal.
  • Life Insurance Corporation of India, HDFC Mutual Fund, ICICI Prudential Mutual Fund and HDFC Life Insurance together hold over 12 percent of shares and their votes will be pivotal to reach the 75 percent approval threshold.
  • Proceeds are earmarked to bolster liquidity, fund strategic business initiatives and pursue bolt-on acquisitions, with promoters financing the infusion through creditor recoveries rather than share pledges.