Shareholders of ZEE Entertainment have Approved the Plan to Raise Rs 2,000 Crore

Zee Entertainment shareholders have approved a proposal to raise Rs 2,000 crore from the market through a variety of methods, including the issuance of equity shares and qualified institutional placements (QIPs).

According to a scrutinizer report submitted by Zee, the special resolution for "issuance of securities for an amount not exceeding Rs 2,000 crore" received 78.83 percent of the total votes cast. "The shareholders of the company have duly passed the resolution for issuance of securities for an amount not exceeding Rs 2,000 crore with requisite majority," according to a regulatory filing.

Zee Entertainment Enterprise Ltd (ZEEL) intends to raise funds in one or more tranches via a private placement, a qualified institutional placement, a preferential issue, or a combination of these.

Though the corporation has not disclosed how it intends to invest the funds, analysts believe a part of the funds would be utilized for corporate expansion. This is the first financing round since Sony Corporation abandoned an agreement to merge its two Indian entertainment firms with ZEEL.

Following the collapse of the merger deal, ZEEL announced a strategic reorganization of its revenue vertical, led directly by the MD and CEO.

Elara Capital SVP Karan Taurani commented on the news, saying, "This move will also improve investor confidence, depending on the nature and quality of investors".

Nonetheless, "we await more clarity on the potential utilization of funds and the route/manner in which the funds would be raised", according to him.