Zee Entertainment Enterprises, a major broadcaster based in Mumbai, India, has witnessed a 3.5% surge in its share price following board approval to raise ₹2,237 crore through the preferential issue of convertible warrants to promoter entities. The move increases promoter stake from 3.99% to 18.39% and aligns with Zee’s strategic capital enhancement goals.
Shares of Zee Entertainment Enterprises Ltd., one of India’s leading broadcasting companies headquartered in Maharashtra, rose by over 3% after the company’s board approved raising ₹2,237 crore through a preferential issue of convertible warrants. This strategic move aims to increase promoter holding and strengthen the company’s core operations.
The preferential allotment will be issued to Altilis Technologies or Sunbright Mauritius Investments, resulting in a significant rise in promoter stake—from 3.99% to 18.39%. Zee’s promoter group, led by Essel Group founder and Chairman Emeritus Subhash Chandra, previously held only a small stake in the company.
Zee’s share price peaked at ₹142.70 on June 17, marking its steepest advance since June 12, before settling at ₹140, up 1.52%. The company’s shares have gained 15.4% so far this year, outperforming the broader Nifty 50, which is down 5.2% in the same period. Zee’s current market capitalization stands at ₹13,447.27 crore.
According to Kotak Securities, the capital raise will support Zee’s business stability and potential value-generating opportunities. The firm adjusted its target price to ₹127, up from ₹115, while maintaining a “Reduce” rating, citing the need for more clarity on capital use and a broader recovery in TV advertising.
Zee also held a strategy discussion with JP Morgan, where the investment bank presented insights on growth strategies and stakeholder perceptions of the stock. The board is reportedly evaluating several initiatives based on these inputs.
For the January–March quarter (Q4FY25), Zee posted a significant jump in its consolidated net profit to ₹188.4 crore—14 times higher than the same quarter last year. Revenue increased marginally by 0.7% year-on-year to ₹2,184.1 crore, despite a sharp 24.56% decline in advertising revenue.
Zee is still navigating the aftermath of its failed merger with Sony Group’s Culver Max Entertainment, which was expected to create a $10 billion media giant, surpassing Reliance and Disney’s JioStar joint venture in scale.
The company’s latest capital strategy indicates a renewed focus on independence, accountability, and long-term investor confidence.
