This small-cap stock, engaged in broadcasting, digital streaming, film and music production, and live entertainment, offering content across multiple platforms and languages globally, jumped 4 percent after the promoter group entities agreed to infuse Rs. 2,237.44 cr to strengthen the balance sheet.
With a market capitalization of Rs. 13,490.50 crores, the share of Zee Entertainment Enterprises Limited has reached an intraday high of Rs. 143.35 per equity share, rising nearly 3.91 percent from its previous day’s close price of Rs. 137.95 Since then, the stock has retreated and is currently trading at Rs. 140.45 per equity share.
Zee Entertainment Enterprises Limited has announced the issuance of up to 16.95 crore fully convertible warrants to promoter group entities on a preferential basis, priced at Rs. 132 per warrant, which is at a 6.01 percent discount to its current price.
This fundraising initiative will bring in Rs. 2,237.44 crore, aimed at strengthening the company’s financial foundation and supporting its next phase of strategic growth. The preferential issue is subject to shareholders’ approval.
The move follows a detailed evaluation by investment bank J.P. Morgan, which presented strategic alternatives to support Zee’s expansion in the content and technology space. With this capital infusion, Zee aims to enhance its balance sheet, explore high-growth opportunities, and drive innovation in digital entertainment.
The warrants will be given to Altilis Technologies Pvt. Ltd. and/or Sunbright Mauritius Investments Ltd. The holders can convert the warrants into shares anytime within 18 months. If they don’t use them within this time, the warrants will expire, and the amount paid will be forfeited.
The company’s promoter shareholding increased from 3.99 percent to 18.39 percent, which also signals their strong commitment to the company’s long-term vision.
Zee Entertainment Enterprises Limited (ZEEL) was established in 1992 and is a leading Indian media conglomerate headquartered in Mumbai. ZEEL was formerly known as Zee Telefilms and has since evolved into a global content powerhouse.
The company operates across broadcasting, digital, movies, music, and live entertainment, reaching audiences in over 190 countries and connecting with more than 1.3 billion people worldwide.
Zee Entertainment works in four main areas. It runs 45 TV channels in different languages, has a digital app called ZEE5, makes and shares movies and music, and also plans live shows and events to entertain people.
Coming into financial highlights, Zee Entertainment Enterprises Limited’s revenue has increased from Rs. 2,170 crore in Q4 FY24 to Rs. 2,184 crore in Q4 FY25, which has grown by 0.65 percent. The net profit has also grown by 1,346.15 percent, from Rs. 13 crore in Q4 FY24 to Rs. 188 crore in Q4 FY25.
Zee Entertainment Enterprises Limited’s revenue and net profit have grown at a CAGR of 0.40 percent and 5.31 percent, respectively, over the last five years. In terms of return ratios, the company’s ROCE and ROE stand at 9.21 percent and 6.79 percent, respectively. Zee Entertainment Enterprises Limited has an earnings per share (EPS) of Rs. 7.07, and its debt-to-equity ratio is 0.03x.
Written By – Nikhil Naik
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