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Zee to Raise Funds Worth $239 mln via FCCBs

Jul 19, 2024

By: BlinkX Research Team

Zee Entertainment on Tuesday, July 16, announced that it has received board approval for raising funds via an issue of 10-year foreign currency convertible bonds (FCCBs) of up to $239 million i.e. Rs 1,997 crore.

Key Takeaways from Zee Entertainment Fund-raising 

• Zee Entertainment announced it has received board approval for raising funds via an issue of 10-year foreign currency convertible bonds (FCCBs) of up to Rs 1,997 crore.
• The fund-raising will see the FCCBs bear a 5% coupon rate and be issued to Resonance Opportunities Fund, St John's Wood Fund, and Ebisu Global Opportunities through a private placement.
• The offering follows the board and shareholder permission to raise Rs 2,000 crore in capital to provide strategic flexibility and support future development possibilities in the media business.
• Investors can convert these bonds into equity shares at a price of Rs 160.20 per share, plus an equity premium of Rs 159.20. 
• If all FCCBs are converted, 124.6 million equity shares with a face value of Rs 1 would be distributed.
• The company's floor price for the FCCBs offering is Rs 152.45 per share.

The fund-raising, which began on Tuesday, will see the FCCBs bear a 5% coupon rate and be issued to Resonance Opportunities Fund, St John's Wood Fund, and Ebisu Global Opportunities through a private placement, the company stated via exchanges.

The FCCB offering follows the company's board and shareholder permission to raise Rs 2,000 crore in capital to provide strategic flexibility and support future development possibilities in the media business.

Investors can convert these bonds into equity shares at a price of Rs 160.20 per share, plus an equity premium of Rs 159.20. If all FCCBs are converted, 124.6 million equity shares with a face value of Rs 1 would be distributed.

The company's floor price for the FCCBs offering is Rs 152.45 per share. Zee's funding drive comes after Sony canceled their $10 billion merger in January.

Since then, the media company has announced a spate of cost-cutting and loss-reduction initiatives, including the reduction of 15% of its workers. It also announced a redesign of the company's leadership structure as part of its restructuring efforts. 

About Zee Entertainment Enterprises Limited:

Zee Entertainment Enterprises Limited, formerly known as Zee Telefilms Limited, was formed in 1982. The firm is one of India's most prominent media and entertainment companies. Its primary activity is the broadcasting of satellite television channels and digital media; space selling agents for other satellite television channels; and the sale of media content, such as programs, film rights, feeds, song rights, movie production, and distribution.

In 1992, the firm debuted its flagship television channel, Zee TV. Since then, they have grown into a fully integrated media conglomerate with operations spanning the entire media spectrum, including television programming, satellite broadcasting, film production and distribution, music publishing, distance education, and the development of animation software. 

Read More About Zee Entertainment Enterprises Share Price Here!