Zee Entertainment allots 20.94 cr convertible warrants to promoter group entity
Earlier this month, the Securities Appellate Tribunal stayed a Sebi order to debar ZEEL for two months and its CEO Punit Goenka for one year from capital markets in the Hyderabad land pledge case.
The Preferential Issue and Allotment Committee approved the allotment on August 21, following the extraordinary general meeting nod on July 31 and in-principle approvals from the NSE and BSE dated July 27, besides a Securities Appellate Tribunal order dated August 14, the company said in a regulatory filing.
“The company has received 25 per cent of the warrant issue Price, i.e., Rs 31.5 per warrant, aggregating to Rs 659.76 crore as the warrant subscription price from the allottee,” ZEEL said in a regulatory filing.
The warrants have been allotted at Rs 126 apiece, translating into a total issue size of about Rs 2,639 crore, lower than the up to Rs 3,143.52 crore the board had cleared on July 1 for up to 24.95 crore warrants.
“The allotment of these warrants entitles the allottee to seek conversion of the warrants in one or more tranches, within a maximum period of 18 months from the date of allotment of the warrants, viz August 21, 2026, upon payment of Warrant Exercise Price of Rs 94.5 equivalent to 75 per cent of the warrant issue price,” it said.
As warrants have only been allotted and not converted, there is no immediate change in ZEEL’s paid-up share capital, the company clarified.Sunbright Mauritius, which held nil shares in ZEEL prior to the allotment, would hold a 17.90 per cent stake in the company on a fully diluted basis upon full conversion of the warrants, as per the disclosure.
Warrants had earlier been approved by the ZEEL board on July 1 for issuance to the promoter group entity, with the company noting at the time that the move would increase promoter holding, which stood at 3.99 per cent as of March 2026.
Earlier, on July 2, ZEEL had informed that its board had approved the preferential allotment of up to 24.95 crore fully convertible warrants to Sunbright Mauritius Investments Ltd at an issue price of Rs 126 per warrant, aggregating up to Rs 3,143.52 crore.
The “Fully Convertible Warrants” have a “face value of Re 1/- each” at an issue price of Rs 126, which includes a premium of Rs 125.
