Zee Entertainment gains depend on advertising revenue recovery, fund usage

The board of directors of Zee Entertainment Enterprises (Zee) approved the issuance of up to 169.5 million fully convertible warrants to promoter entities- Altilis Technologies and Sunbright Mauritius. These are convertible within 18 months of allotment at ₹132/warrant (2.6 per cent premium to the Sebi floor price).

 

While 25 per cent of the warrant price is to be paid up front, the balance 75 per cent is to be paid on conversion. This issue is subject to shareholders’ approval on July 10. On full conversion, the warrants will increase equity by 17 per cent and thus dilute earnings per share