The Board of Zee Entertainment is set to meet on June 6 to discuss and potentially approve a plan to raise funds. This could involve issuing equity shares or other types of securities.
The fundraising could be done in various ways, including a qualified institution placement, preferential issue, or other methods.
In a recent filing, the company stated, “A meeting of the Board of Directors is scheduled for June 6 to consider raising funds through the issuance of equity shares and/or other eligible securities by permissible methods, including but not limited to a private placement, a qualified institutions placement, preferential issue, or other methods or combinations.”
This fundraising proposal follows Sony’s decision to scrap a $10 billion merger with Zee earlier in January, a deal that would have created a major player in Indian TV.
Since then, Zee has taken several steps to cut costs and reduce losses, including laying off 15% of its workforce. In the recent fourth quarter, Zee reported a profit of Rs 13.35 crore, compared to a loss the previous year, thanks to strong advertising demand and reduced expenses. Domestic advertising revenue for the quarter grew by nearly 11% year-on-year, driven by a recovery in the advertising market and increased spending by FMCG (fast-moving consumer goods) clients. The company also took a restructuring charge of Rs 21.97 crore during the quarter.
Media analyst Karan Taurani from Elara Capital noted that Zee has performed reasonably well in terms of tariff hikes and advertising revenue growth.
However, Zee mentioned in its earnings report that higher one-time costs related to these measures might impact margins in the first quarter.
On Monday, Zee’s shares closed over 5% higher at Rs 156.75 on the NSE.
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