Zee Media Corporation has approved a fund raise of ₹200 crore through the issuance of up to 13,33,33,333 warrants. Each warrant is fully convertible or exchangeable into one fully paid-up equity share of the company. The decision was made during a Board Meeting held on September 27, 2024.
Key Details of the Fundraising:
- Warrants Issue: Up to 13.33 crore warrants will be issued at a price of ₹15 per warrant, amounting to a total of ₹200 crore.
- Conversion Terms: Each warrant can be converted into one fully paid equity share of face value ₹1 at a price of ₹15 (including a ₹14 premium).
- Time Frame: Warrant holders can convert their warrants into equity shares within 18 months from the allotment date.
- Payment Structure: 25% of the issue price will be paid at the time of subscription and allotment of warrants, with the remaining 75% to be paid upon exercising the option to convert the warrant into an equity share, within the 18-month period.
- Preferential Issue: The warrants will be issued to non-promoter entities on a preferential basis, subject to approval by the company’s members, regulatory authorities, and compliance with SEBI and other relevant regulations.
Upcoming EGM:
An Extraordinary General Meeting (EGM) is scheduled for October 22, 2024, to seek the members’ approval for the issuance of these warrants. The meeting will be held virtually, allowing members to participate through video conferencing and other audio-visual means.
This fund-raising initiative aims to strengthen Zee Media Corp’s financial position by bringing in capital through a strategic issuance of convertible warrants to non-promoter entities.
