Zee Media gets Sebi's nod for Rs 200 cr rights issue

Zee Media Corporation has received capital market regulator Sebi's approval to raise up to Rs 200 crore through rights issue.

In a rights issue, shares are issued to existing investors in line with their holding at pre-determined price and ratio.

The company had filed its application with the capital market regulator for the proposed rights issue in January through its lead merchant banker Axis Capital Ltd.

According to the latest update by the Securities and Exchange Board of India (Sebi), the regulator issued its final 'observations' on the draft offer documents on February 18.

Issuance of 'observations' on offer documents by Sebi is considered as a clearance to the issuer to go ahead with the share issues through routes like rights issue, IPOs and FPOs.

Sebi, last month, had sought clarification from the merchant banker regarding the issue.

The funds raised from the issue would be utilised towards purchase of equipment and accessories for production and broadcasting, repayment of certain loans availed by the company, funding subsidiaries for repayment of loans, and other general corporate purposes.

Zee Media Corporation Ltd (ZMCL), formerly known as Zee News Ltd, broadcasts 10 news channels including two national ones - Zee News and Zee Business.

Its regional news channels are Zee 24 Taas, 24 Ghanta, Zee Sangam, Zee Madhya Pradesh Chhattisgarh, Zee Purvaiya, Zee Marudhara, Zee Punjab Haryana Himachal and Zee Kalinga.

Earlier in October, the company's board of directors had "approved, in-principle, raising of funds for an amount not exceeding Rs 200 crore through issue of equity shares of the company to its eligible shareholders.