Zee Media Jumps 8% After Board Greenlights Rs 200 Cr Fundraise

Zee Media surged by as much as 8.37% to reach an intraday high of ₹15.53 per share on Wednesday after the company's board of directors approved a fundraise of up to ₹200 crore through all permitted instruments. 

At 2:02 PM IST, Zee Media stocks were trading 6.42% higher at ₹15.25 per share. In comparison, the BSE Sensex was trading 0.69% higher at 78,590.77 levels. Shares of Zee Media have gained over 90% in the past year. Today marked the fourth consecutive day of gains for the stock.

In an exchange filing, Zee Media said, “We wish to inform you that the Board of Directors of the Company, at its meeting held today i.e. June 26, 2024, has granted its approval for exploring available options for raising of funds through all permitted instruments, including but not limited to, by way of issuance of equity shares and/or preference shares and/or any other eligible securities, including by way private placement or qualified institutions placement or preferential issue, or any other permissible modes, for an amount not exceeding ₹200 crores, in one or more tranches, and subject to such approvals as may be required including that of shareholders / regulatory and statutory approvals.”

Zee Media is considering various permitted instruments for fundraising, including equity shares, preference shares, and other eligible securities. The funds may be raised through multiple methods, such as private placements, qualified institutional placements (QIPs), preferential issues, or other permissible modes.

Earlier this month, the Board of Directors approved the incorporation of a wholly owned subsidiary (WOS) of the company. This WOS will focus on combining ancient knowledge from scriptures with modern science, emphasizing spirituality, mindfulness, and well-being. It aims to launch relevant digital and alternative media properties within the infotainment space. 

According to the Bombay Stock Exchange (BSE), the market capitalization of this SmallCap company is ₹946.27 crore. On a consolidated basis, Zee Media Corporation reported a net loss of ₹6.51 crore in Q4 FY24, compared to a net loss of ₹45.79 crore in Q4 FY23. Net sales increased by 21.2% year-on-year to ₹178.98 crore in Q4 FY24.

Zee Media Corporation, a media company, is a subsidiary of Zee Entertainment Enterprises Limited (ZEEL), which is part of the Essel Group. Zee Media operates a variety of news channels in multiple languages, including Hindi, English, and regional languages, catering to a broad audience across India.

The company's channels include Zee News (Hindi), Zee Hindustan (Hindi), WION (English), and regional channels such as Zee 24 Taas (Marathi) and Zee 24 Ghanta (Bengali), among others. These channels cover a wide range of topics, including politics, business, entertainment, sports, and international news.