Mumbai: Zee Entertainment shares jumped nearly 4 percent on Tuesday after the company shared big investment news. The media company said it will raise over Rs 2,200 crore from its promoters.
The stock went up by 3.58 percent to Rs 142.90 on the BSE. At the NSE, the share price rose 3.50 percent to close at Rs 142.75.
On Monday, Zee Entertainment Enterprises Ltd (ZEEL) said it would get Rs 2,237.44 crore from promoter group entities. These entities are Altilis Technologies and Sunbright Mauritius Investments.
However, it ended in red in the last due to profit booing from higher levels. Zee shares ended at Rs 137.19 per share down by 0.72 percent.
The company’s board approved the plan to issue up to 16.95 crore fully convertible warrants to these promoter group firms. These warrants will be issued for cash. This means the promoters will pay money now, and they can convert these warrants into shares later.
After this deal, the promoter group’s stake in the company will go up to 18.4 percent.
Zee said this fresh money will help strengthen its core businesses and give it a solid financial base. The company wants to grow in the fast-changing media and entertainment world, and this fund will help it explore new business opportunities.
Zee also added that this is part of the next phase of its growth journey. The promoters are fully backing the company by bringing in large funds. Their increased ownership shows their strong commitment to Zee’s future.
The move is being seen as a positive sign by investors. It shows that the promoters have confidence in the company’s growth plans. That is one reason why the share price went up soon after the news was made public.
Zee is one of India’s top media and entertainment companies. It runs several popular TV channels and creates a variety of content. With this new fund, Zee plans to grow even more in the coming years.
This major financial step is likely to boost investor confidence and improve the company’s standing in the market.
