Zee’s ₹2,237 Cr Fundraising Plan Faces Opposition from Proxy Advisory Firms


Zee’s ₹2,237 Cr Fundraising Plan Faces Opposition from Proxy Advisory Firms






Zee Entertainment’s ₹2,237 Cr Fundraise Faces Pushback from Proxy Advisory Firms

Zee Entertainment Enterprises Ltd.’s recent proposal to raise ₹2,237 crore through fully convertible warrants has come under scrutiny. Three leading proxy advisory firms have issued warnings, advising shareholders to vote against the resolution, citing concerns about shareholder dilution and lack of transparency.

📢 Advisory Firms Raise Red Flags

The advisory firms — Stakeholders Empowerment Services (SES), Institutional Investor Advisory Services (IiAS), and InGovern Research — have urged shareholders to oppose the preferential issue of fully convertible warrants to promoter entities.

In its recommendation, InGovern Research stated,

“Given the excessive dilution from the proposed warrants issue and the recent challenges faced by Zee, the increase in promoter holding may not be in the best interest of minority shareholders.”

The firm also called for greater transparency, asking Zee's board to provide a project-wise breakdown of how the raised funds will be utilized. Additionally, investors are being encouraged to demand disclosures about the source of funds for payment obligations and whether the proposal underwent independent audit committee review.

📊 Fundraising Plan Details

Earlier this month, Zee's board approved a proposal to raise ₹2,237 crore by issuing up to 16.95 crore fully convertible warrants to promoter group entities — Altilis Technologies and Sunbright Mauritius — both of which currently hold no stake in the company.

Post allotment, their collective holding will rise to 15%, increasing total promoter ownership from 3.99% to 18.39%.

The issue price has been fixed at ₹132 per warrant, representing a 4.5% discount compared to the market rate on the day of the announcement.

🧾 Why the Concerns?

The proxy firms argue that such a significant increase in promoter stake via preferential allotment could negatively impact existing shareholders. They also expressed concern over Zee’s recent operational and financial setbacks and the potential lack of independent oversight in approving the warrant issue.

Popular posts from this blog

Made-in-India iPhone Exports to the US Skyrocket: 97% Shipped Between March and May 2025

📱 Made-in-India iPhone Exports to the US Skyrocket: 97% Shipped Between March and May 2025 🔥 Apple's Strategic Move to Beat China Tariffs and Boost India Production Apple is rapidly increasing its iPhone exports from India to the United States in a significant shift that highlights its smart strategy to bypass high tariffs on Chinese-made products. According to recent customs data reviewed by Reuters, a stunning 97% of iPhones exported from India between March and May 2025 were shipped directly to the US . 📦 Record-Breaking iPhone Exports from India to the US Global tech giant Foxconn exported iPhones worth $3.2 billion (approx. ₹27,547 crore) from India during this three-month period , and almost all of them went to the US market. In May alone, shipments touched nearly $1 billion (around ₹8,608 crore), while the record was set in March with $1.3 billion (₹11,191 crore) worth of iPhones exported. This is a sharp jump compared to 2024, when only about 50% of India’s iPhone e...
Read more

FedEx Founder Frederick Smith Passes Away at 80: Remembering His Remarkable Legacy

FedEx Founder Frederick Smith Passes Away at 80: Remembering His Remarkable Legacy Frederick W. Smith , the visionary founder of FedEx , has passed away at the age of 80. The news was officially announced by FedEx CEO Raj Subramaniam through a company memo published on Saturday. Born in 1944 , Frederick Smith was a former officer in the United States Marine Corps and served during the Vietnam War . In 1973 , he founded Federal Express with just 389 employees and a fleet of 14 small aircraft . On its very first night, the company delivered 186 packages from Memphis to 25 cities across the United States . Over the decades, FedEx expanded into a global logistics powerhouse. Today, FedEx operates over 705 aircraft , more than 200,000 delivery vehicles , and manages nearly 5,000 global facilities . The company now employs approximately 500,000 people worldwide and handles an average of 17 million shipments every day . In 2022, Smith stepped down as CEO, passing the leadership t...
Read more