Zee Entertainment to Raise Rs 2,000 Crore Post Sony Merger Collapse

Zee Entertainment's board has approved raising Rs 2,000 crore through equity share issues and qualified institutional placements. This fundraising follows the termination of its merger with Sony Corporation. The funds will potentially support business expansion amidst the company's ongoing strategic realignment and performance improvement initiatives.

PTI | New Delhi | Updated: 06-06-2024 17:37 IST | Created: 06-06-2024 17:37 IST
Zee Entertainment to Raise Rs 2,000 Crore Post Sony Merger Collapse
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Zee Entertainment announced plans on Thursday to raise Rs 2,000 crore. The board has approved various fundraising routes, including equity share issues and qualified institutional placements (QIPs). This decision comes after the Sony Corporation terminated a merger deal with Zee earlier this year.

"The Board of Directors of the Company has given its in-principle approval for raising funds not exceeding Rs 2,000 crore," stated Zee in a regulatory filing. This move will require a series of regulatory and statutory approvals, including shareholder consent.

While the company didn't specify how the funds would be used, industry experts suggest that a portion will support business expansion. This fundraising marks the first major financial move since the merger collapse and aims to reinforce investor confidence.

Karan Taurani, SVP of Elara Capital, commented: "We believe this will boost investor confidence, which has been low since the merger with Sony was called off."

Amid increased competition from the RIL-Disney merger, the cash infusion is expected to help strengthen Zee's market position.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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