Zee Entertainment shares drop nearly 7% after FCCB announcement

By Aditya Bhagchandani Published on July 18, 2024, 10:29 IST

Shares of Zee Entertainment Enterprises fell almost 7% on Thursday after the company announced its decision to issue 10-year foreign currency convertible bonds (FCCBs) worth $239 million.

The company is raising the funds from Resonance Opportunities Fund, St. John’s Wood Fund, and Ebisu Global Opportunities Fund. Zee Entertainment’s Board of Directors approved the plan during a meeting held late Wednesday. The bonds carry a 5% coupon and are unsecured, unlisted, and set to mature in 10 years.

The conversion price for the FCCBs is Rs 160.20 per equity share, which includes an equity premium of Rs 159.20 per share. The floor price has been set at Rs 152.45 per equity share.

As of 10:20 AM, Zee Entertainment shares were trading 6.58% lower at ₹145.28 on the NSE.

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Aditya Bhagchandani

Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.