Zee Entertainment Enterprises’ share price was down amid broad market weakness in early trade on Tuesday as the troubled media firm plans to raise capital.
What Happened: The Punit Goenka-led firm is set to raise capital for its growth and has scheduled a board meeting on June 6 to discuss the plan, according to an exchange filing.
Since the $10-billion (₹83,353 crore) merger with Sony fell through in January, Zee has been conserving capital. The company is now considering issuing equity or convertible papers through private placements, QIPs or preferential issues.
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Zee is demanding $90 million (₹750 crore) in termination fees from Sony for the scrapped deal. Meanwhile, Reliance Industries, led by Mukesh Ambani, has partnered with Walt Disney to compete with Netflix and Amazon Prime.
After the merger collapse, Zee cut costs, reducing its workforce by nearly 15%. The company's board and leadership have also seen significant changes recently.
Zee's fundraising plan comes amid an ongoing probe by the market regulator into alleged ₹200 crore fund diversion by Zee's promoters.
Price Action: Zee’s share price was down 2.9% at ₹151.80 in early trade on Tuesday as markets were dropping amid early election jitters.
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