Zee Entertainment allots 20.94 crore warrants to promoter entity

Zee Entertainment Enterprises Ltd (ZEEL) has allotted 20.94 crore fully convertible warrants to promoter group entity Sunbright Mauritius Investments Ltd at Rs 126 each, totalling about Rs 2,639 crore. The allotment was approved by the Preferential Issue and Allotment Committee on August 21, following shareholder nod on July 31 and in-principle exchange approvals. The company has received Rs 659.76 crore as warrant subscription price, representing 25 per cent of the issue price.

Sunbright Mauritius, which held no shares before this, will hold a 17.90 per cent stake on a fully diluted basis upon conversion. The warrants can be converted within 18 months, by August 21, 2026, at an exercise price of Rs 94.5 per warrant. The promoter holding stood at 3.99 per cent as of March 2026. The issue size is lower than the up to Rs 3,143.52 crore the board had cleared on July 1 for up to 24.95 crore warrants.

Earlier this month, the Securities Appellate Tribunal stayed a Sebi order debarring ZEEL for two months and CEO Punit Goenka for one year from capital markets in the Hyderabad land pledge case. The company clarified that since the warrants are only allotted and not yet converted, there is no immediate change in its paid-up share capital.