Zee Media Corporation’s shares were in focus on November 7, 2024, after the company announced a fundraising deal involving the allotment of 13,33,33,333 fully convertible warrants to three Foreign Portfolio Investors (FPIs): UNICO Global Opportunities Fund Limited, Ebisu Global Opportunities Fund Limited, and AL Maha Investment Fund PCC – Onyx Strategy. The warrants were issued at Rs. 15/- each, which includes both the subscription price and the exercise price, amounting to a total of Rs. 200 crore.
The company has already received 25% of the warrant issue price, or Rs. 49.99 crore, from the allottees as part of the warrant subscription price. These warrants are convertible into equity shares within a maximum period of 18 months from the allotment date (November 7, 2024). Upon conversion, each warrant will entitle the allottees to receive one fully paid-up equity share of the company at Rs. 15/- per share (including a premium of Rs. 14/- per share).
This fundraising initiative was approved by the company’s shareholders at an Extra-Ordinary General Meeting (EGM) held on October 22, 2024. At the EGM, shareholders gave the green light for the company to raise to Rs. 200 crore by issuing up to 13,33,33,333 fully convertible warrants on a preferential basis to identified Non-Promoter/Non-Promoter Group entities.
Despite the strong stock price surge (an 89% rise over the last 6 months), Zee Media Corporation reported a widening net loss of Rs. 49.86 crore for the quarter ending September 2024, compared to a loss of Rs. 30.70 crore for the same period in the previous year. Sales also dropped by 13.78%, falling from Rs. 151.59 crore in Q2 FY24 to Rs. 130.70 crore in Q2 FY25.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Please conduct your research or consult with a professional advisor before making any investment decisions.
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