Zee Entertainment Eyes Market for Fresh Funds After Sony Deal Collapse

Zee Entertainment is planning to raise funds through various routes, including issuing equity shares and qualified institutions placements (QIPs). This decision follows the termination of its merger deal with Sony Corporation. The board is set to meet on June 6 to consider the proposal, amidst a strategic realignment to improve business performance.

Zee Entertainment announced plans on Monday to raise funds through multiple channels, including the issuance of equity shares and qualified institutional placements (QIPs). This strategic move comes in the wake of the terminated merger deal with Sony Corporation, as the company seeks to stabilize its financial standing.

According to a regulatory filing, ZEEL's Board of Directors is scheduled to convene on June 6 to consider the fundraising proposal. 'A meeting of the Board of Directors of the Company is scheduled to be held on June 6, inter-alia, to consider raising of funds by way of issuance of equity shares and/or any other eligible securities (convertible/non-convertible) through permissible modes,' the filing detailed.

The fundraising initiative, not limited to private placements, QIPs, preferential issues, or other methods, sees ZEEL aiming to navigate through the aftershocks of the merger’s termination. Post-termination, ZEEL announced a strategic realignment of its revenue vertical, directly managed by the MD and CEO, to tackle the macroeconomic slowdown and operational challenges stemming from the failed merger.

In an investor call in March, Zee Chairman highlighted the company's struggle with transitory issues and industry-wide slowdowns since 2020. Earlier, ZEEL also laid off 50% of its Bengaluru-based Technology and Innovation Centre staff. Moreover, ZEEL has sought a termination fee of $90 million from Sony for calling off the $10-billion merger deal.