Zee shareholders approve ₹3,143.5 crore promoter fund infusion, Esop plan

Company will issue 24,94,85,563 warrants at Rs 126 each; ESOP plan for employees also gets shareholder approval

Shareholders of Zee Entertainment Enterprises Ltd have approved the company’s proposal to issue fully convertible warrants to a promoter group entity on a preferential basis, clearing the way for a ₹ 3,143.5 crore fund infusion.

 

The approval was granted at an Extraordinary General Meeting (EGM) held on Thursday. Shareholders also approved resolutions to implement the “Truly Yours” Employee Stock Option Plan (Esop) for employees of Zee and its subsidiary companies. 

Following the approval, Zee will issue 24,94,85,563 warrants to the promoter group entity at ₹126 per warrant. The promoters will invest ₹3,143.5 crore in the company, eventually raising total promoter shareholding to 23.79 per cent. 

 

Business Standard had earlier reported that Zee’s board had approved the capital infusion through a preferential allotment of fully convertible warrants to promoter group entity Sunbright Mauritius Investments. 

Esop approval 

The company will also implement the “Truly Yours” Esop by granting 3,74,22,835 stock options to eligible employees of Zee and its subsidiary companies. The options will have a face value of Re 1 each and will be granted in one or more tranches.

Zee said the approvals would strengthen its financial foundation, support new strategic growth avenues and enhance capabilities in existing business segments. 

The company said the Esop framework would allow employees to participate in its growth journey and align employee incentives with long-term shareholder interests. 

Promoter capital 

The shareholder approval follows earlier board discussions on Zee’s growth plans and strategic alternatives to improve its financial position. The board had approved enhanced promoter shareholding and additional fund infusion to strengthen the company’s ability to compete in a changing entertainment market. 

R Gopalan, chairman, Zee Entertainment Enterprises Ltd., said: “This approval is a clear reflection of the shareholders’ belief in the Company and its management. I am grateful to the shareholders for expressing their whole-hearted support towards the Company’s strategic growth path. The Board’s decision and the subsequent shareholder approval, to enhance the foundation and resilience of the Company through promoter fund infusion, will further enable ‘Z’ to stay ahead of competition and generate higher value for all its stakeholders. I would also like to thank the shareholders for recognizing the immense contributions of ‘Z’s Human Capital and approving the Employee Stock Option Plan, that will only spur higher innovation and accountability to drive the Company forward. The Board firmly believes that robust growth capital coupled with enhanced promoter alignment, will serve as key enablers in ensuring long-term profitability in a dynamic business environment. With the approval of the key resolutions, the Company is on a furthermore solid footing to execute its future growth plans effectively.”

 

The approvals give Zee access to promoter capital at a time when media and entertainment companies are investing in content, technology and distribution to defend market share and build new revenue streams.