Zee Entertainment Enterprises has announced an investment of up to ₹116 crores in Phantom Digital Effects. This strategic move involves the acquisition of Compulsorily Convertible Debentures (CCDs) on a preferential allotment basis.
The Board of Directors of Zee Entertainment approved the investment during its meeting on 17 April 2026. The investment is structured to be completed in one or more tranches, subject to the terms and conditions agreed upon with Phantom Digital Effects.
Phantom Digital Effects, a company engaged in post-production activities, including visual effects (VFX) services, animation, and other creative services, is set to benefit from this investment. The company has a paid-up equity share capital of ₹15.92 crores, with a turnover of ₹1,022 million for the financial year 2025.
The investment is not merely financial but aims to establish a strategic partnership between Zee Entertainment and Phantom Digital Effects. Zee Entertainment seeks to leverage Phantom’s robust execution capabilities to enhance its content vision, intellectual property ownership, and distribution capabilities. This collaboration is expected to accelerate Zee’s creative ambitions, particularly in the global content ecosystem, which is increasingly shifting towards VFX-heavy OTT and films.
The acquisition does not fall under related party transactions, and there is no interest from Zee’s promoter group in Phantom Digital Effects. Additionally, no governmental or regulatory approvals are required for this investment.
Phantom Digital Effects, incorporated in India on 2 February 2016, has shown significant growth over the years, with turnovers of ₹579 million in FY 22-23, ₹893 million in FY 23-24, and ₹1,022 million in FY 24-25.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).