Z Entertainment Enterprises Limited is going to release its promoter entities on 16,95,03,400 i.e. 16.95 crore Fully Convertible Warrant, Preference Base. This proposal was approved by the board in the month of June and now the shareholders have also approved the extraordinary general meeting. These warrants will be released to Promoter Group Anties- Altilis Technologies Private Limited and Sunbright Mauritius Investments Limited on Professional Base at a price of Rs 132 per warrant. In this way, the total value of this issue will be Rs 2237,44,48,800 i.e. Rs 2237.44 crore.
This means that promoter entities will put a capital of Rs 2237.44 crore in the company in exchange for the warrant issued to them. Stock exchanges have been told by Zee Entertainment Enterprises that 60% of the company’s shareholders have voted in favor of this proposal. The proposal was passed on a large scale due to heavy support from retail investors. About 80% of the individual investors voted in favor of the proposal, while 20% opposed it. Retail Investors have more than 40% stake in the company.
Institutional Investors came down to proposal
On the other hand, Institutional Investors preferred to increase promoters’ stake in the company. Of these investors, 52% voted against the proposal, while 48% voted in its favor. The opposition of institutional investors has come up at a time when the domestic proxy advisory firms appealed to the shareholders to vote against the proposal. However, foreign proxy firms did not take any such decision.
The company’s promoter Subhash Chandra held a 90 -minute conversation with investors on July 3 and told analysts and investors about the company’s further strategy. He had said that we are neither taking any loan nor mortgaging any shares.
Every warrant will be shared
Each warrant will be able to convert to a fully paid up equity share of a company with a face value of 1 rupee. The company has told the stock markets that warrantholders can convert them to shares within 18 months from the date of warrant allotment. For this, they will have to pay a warrant exercise price of Rs 99 per warrant.
How much will the promoters share to increase
The move aims to strengthen the financial foundation of G Entertainment and support strategic growth plans in content and technology. This will increase the promoters’ stake in the preference issue company by 18.39%. By the end of March 2025, the promoters had 3.99 percent stake in the company.
Share closed with gains
BSE on 10 July Zee Entertainment Enterprises The stock closed at Rs 141.90 with an increase. The company’s market cap is Rs 13600 crore. The stock has gained 13 percent in 6 months and 36 percent in 3 months. The stock is expected to rose on July 11 after the shareholders’ approval on the proposal of capital infusion. Nuwama Institutional Equities have set a target price of Rs 178 per share with a ‘BUY’ rating for shares.
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