This entertainment company which is one of India’s leading media and entertainment companies with a strong presence in the news and regional entertainment genres, saw an upside movement of 5 percent earlier today after the Board approved ₹400 Crore fundraising plan and also reported an increase in the FII stake limit.
Price Action
With a market capitalization of Rs. 1,188.31 cr, the shares of Zee Media Corporation Ltd. were trading at Rs. 19.89 per equity share, up over 5 percent from its previous day’s close price of Rs. 18.95 per equity share.
What Happened
The Board of Directors has approved exploring opportunities to raise funds of up to ₹400 crore through various permissible instruments. This may include equity shares, convertible securities, or other methods, to be executed in one or more tranches. The fundraising initiative will be subject to necessary approvals from shareholders, regulatory bodies, and other statutory authorities.
Additionally, the Board has approved increasing the shareholding limit for Foreign Portfolio Investors (FPIs) and Foreign Institutional Investors (FIIs) from the current 24% to 49% of the paid-up share capital. This adjustment, staying within the overall permissible limit, will also require shareholder approval. To facilitate these decisions, the Board has finalized a Postal Ballot Notice to seek consent from the shareholders.
Financials
Zee Media Corp Ltd has reported a 15 percent fall in revenue of Rs 153.78 cr in Q2FY24 to Rs 133.12 cr in Q2FY25. This was accompanied by a massive 62 percent fall in net loss from Rs 30.7 cr in Q2FY24 to Rs 49.86 in Q2FY25.
In terms of liquidity ratios, the company reported a debt-to-equity ratio of 0.86 and a current ratio of 0.67. The company currently has net outstanding shares of 62.54 crores in number.
Written by Shwetha Sairam
