New Delhi [India], June 6 : Zee Entertainment has announced plans to raise Rs 2000 crore through Qualified Institutional Placement (QIP) and other methods, as informed in a filing to the exchange on Thursday.
"The Board of Directors of the Company at its meeting held today has, inter-alia, considered and given its in-principle approval for raising funds by way of issuance of equity shares and/or any other eligible securities (convertible/nonconvertible) through permissible modes in one or more tranches," said the company.
It further added, "the aggregate amount to be raised by issuance of such securities shall not exceed Rs. 2000 crores."
The Qualified Institutional Placement (QIP) allows Indian companies to raise capital by selling shares to qualified institutional buyers.
This fundraising approval follows Sony's cancellation of its USD 10 billion mega-merger with Zee earlier this January. Since the termination, Zee has implemented several measures to cut costs and reduce business losses, including a 15 percent workforce reduction and a leadership structure overhaul.
Earlier, Sony ended the merger plans on January 22, 2024, citing unmet 'closing conditions' after two years of negotiations. According to Sony's termination notice, Zee failed to meet certain financial terms and conditions of the merger agreement, particularly concerning cash availability and commercial prudence.
Last week, Zee Entertainment Enterprises Ltd reported a consolidated net profit of Rs 13.35 crore for the March quarter. This is a significant turnaround from the consolidated net loss of Rs 196.03 crore in the same period of previous year.
The shares of the company surged more than 4 per cent to Rs 162 on National Stock Exchange after the company made the announcement of raising the money.
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