Shares of Zee Media Corporation surged 10% to ₹20.75, locking in the upper circuit on September 27, 2024, following the company’s announcement of a ₹200 crore fundraising plan. The stock reacted positively to the news of the company’s decision to issue up to 13.33 crore warrants, convertible into equity shares.
Market Reaction:
Zee Media shares hit the upper circuit limit soon after the fundraising details were made public. As of 2:47 PM, the stock was trading at ₹20.75, up by 10%, indicating strong investor confidence in the company’s capital-raising strategy and its potential impact on the company’s growth.
Background on Fundraising:
The company’s board has approved a preferential issue of warrants at ₹15 per warrant, totaling ₹200 crore. These warrants are convertible into fully paid-up equity shares at a premium, with the conversion option available within 18 months of allotment.
The news of Zee Media’s strategic fundraising has fueled market optimism, with investors keenly watching the company’s next steps in deploying this capital for business expansion and strengthening its financial position.
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