Zee Entertainment Enterprises Limited (ZEEL), which has returned from loss to profit, is going to raise funds to improve its business. Zee Entertainment told the stock market that the board has approved raising up to Rs 2,000 crore.
The company said that it can raise funds through the issue of equity shares, convertible or non-convertible securities or any other approved means. For this, it can also resort to QIP, private placement or preferential issue. Please note that the company will still need regulatory or shareholder approval.
Zee Entertainment’s share price jumps
After this statement from Zee Entertainment, the company’s shares on BSE rose by 7 percent during intraday trade and reached a high of 157.55. However, later this rise declined slightly and Zee’s shares closed at Rs 154, registering a jump of 4.76%. Today, the market cap of Zee Entertainment was recorded at Rs 14,792 crore.
If we look at the returns of 1 year, then its shares have fallen by more than 20 percent, whereas in the last three months, its shares have fallen by about 4.5 percent.
Zee-Sony merger could not happen, dispute still continues
If Zee had merged with Sony, it would have been India’s largest media company, because after the Zee-Sony merger, the company’s valuation would have been $10 billion. But things did not work out. Since the merger was cancelled, the company has laid off about 15 percent of its employees and is also making other cost cuts. On May 6, Zee announced that Zee Media Corporation has sacked Chief Executive Officer (CEO) Abhay Ojha from May 4.
It is worth noting that ZEEL had recently demanded a termination fee of $ 90 million (about Rs 750 crore) from Sony and its Indian subsidiaries. Zee had told the stock markets that Culver Max and BEPL had violated the terms of the merger agreement (MCA) and due to this Zee has terminated this agreement by issuing a letter on May 23, 2024 and has demanded $ 90 million as a penalty. Currently, a legal battle is going on in the court regarding this matter.
How was the financial performance of Zee in Q4FY24
Zee Entertainment’s net profit recovered from loss to Rs 13.35 crore in the fourth quarter of FY24 i.e. Q4FY24. The main reason for the increase in profit was advertising demand and cost reduction.
