Zee Entertainment's Stock Increases 7% as the Board Considers Raising Money

Zee Entertainment's stock increased 7% during the afternoon session on July 12 following the company's announcement that it would think about issuing securities to raise money.

Zee Entertainment stated in a filing with the exchanges that it will raise money by the sale of equity shares and/or any other instruments that meet the requirements through a variety of tranches, including preferential issues, QIPs, private placements, and/or a combination of these.

The company's shares were trading at Rs 157.3 a share on the BSE at 12:25 p.m., up 6.9%.

On July 16, 2024, Zee Entertainment's board of directors will convene to discuss and authorize the issuance of the necessary instruments in order to raise cash.

Rohit Kumar Gupta, the business's chief financial officer, resigned on June 19 due to personal reasons. The company announced the appointment of an interim CFO.

Zee said that Mukund Galgali, head of the company's commercial and strategic projects and a 17-year employee, will take on the temporary position.

The board of Zee approved in principle in June to fund up to Rs 2,000 crore by issuing shares or other qualifying securities. The clearance of this funding comes after Sony withdrew its $10 billion mega-merger with Zee in January of this year.

Zee Entertainment's stock decreased by 22% in trading during the previous year, while the benchmark Nifty 50 index increased by 26%.