ZEEL Board approves raising up to Rs 2,000 crore; stock up 7%

Board of Zee Entertainment Enterprises Limited (ZEEL) on Thursday gave nod to raise up to Rs 2,000 crore by way of issuance of equity shares or any other eligible securities (convertible/nonconvertible) through permissible modes in one or more tranches.

"We wish to inform that the Board of Directors of the Company at its meeting held today has, inter-alia, considered and given its in-principle approval for raising funds by way of issuance of equity shares and/or any other eligible securities (convertible/nonconvertible) through permissible modes in one or more tranches, including but not limited to a private placement, a qualified institutions placement, preferential issue, or any other method or combination of methods, provided that the aggregate amount to be raised by issuance of such securities shall not exceed Rs 2,000 crore," the media firm stated.

The decision is subject to regulatory/statutory approvals, including approval of the shareholders. "This will enable the company to enhance its strategic flexibility to pursue future growth opportunities in the evolving media landscape," ZEEL mentioned.

Shares of the media company moved 7.18 per cent to hit a high of Rs 157.55. It was last seen trading 3.84 per cent up at Rs 152.65.

The counter was trading higher than the 5-day, 10-, 20-, 30-day and 50-day simple moving averages (SMAs) but lower than the 100-day, 150-day and 200-day SMAs. The counter's 14-day relative strength index (RSI) came at 55.20. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The company's stock has a price-to-equity (P/E) ratio of 48.61 against a price-to-book (P/B) value of 1.47. Earnings per share (EPS) stood at 3.14 with a return on equity of 3.01.

On BSE, around 23.16 lakh shares changed hands today. The figure was higher than the two-week average volume of 14.66 lakh shares. Turnover on the counter came at Rs 35.64 crore, commanding a market capitalisation (m-cap) of Rs 14,628.71 crore.

As of March 2024, promoters held a 3.99 per cent stake in the company.