Zee Entertainment Cites Undervalued Stock, Approves Rs 600 Cr Buyback – BW Businessworld
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Zee Entertainment Cites Undervalued Stock, Approves Rs 600 Cr Buyback
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- # Zee Entertainment share price
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Chairman R Gopalan said the company’s current market valuation does not adequately reflect its intrinsic value and growth potential
Zee Entertainment’s board has approved a share buyback worth up to Rs 600 crore at Rs 91 per equity share, covering a maximum of 6.59 crore shares. The proposed buyback represents 6.86 per cent of the company’s existing paid-up equity share capital and will be carried out through the tender offer route.
The company has fixed <a href="https://comicvibe.com/youtube-x-gta-vi-a-collaboration-of-titans-live-on-november-19-at-12-a-m/” title=”YouTube x GTA VI: A collaboration of titans live on November 19 at 12 a.m.”>November 25, 2026, as the record date to determine shareholders eligible to participate in the buyback. The promoters and members of the promoter group have indicated that they will not participate in the proposed offer, according to the exchange filing dated November 12.
R Gopalan, Chairman of Zee Entertainment, said the board believes the company’s intrinsic value is not adequately reflected in its current market valuation. He said the buyback followed a detailed assessment of the company’s financial position, growth plans and shareholder expectations.
“The Board believes that the Company’s intrinsic value is not appropriately reflected in its current market valuation, and the buy-back represents a prudent opportunity to reinforce confidence in the Company’s capabilities to generate long-term value for shareholders,” Gopalan said.
The board also reviewed the company’s financial strength, free cash flow and business outlook before approving the proposal. According to the company, the decision followed deliberations on alternative options and feedback received from investors and shareholders.
Punit Goenka, CEO of Zee Entertainment, said the buyback reflects the company’s growth potential and its ability to capitalise on emerging opportunities. He added that the company has been strengthening its capabilities, sharpening its focus across content and digital businesses and improving operational efficiencies.
“Zee remains on a firm growth trajectory and the Board’s approval on the buy-back of shares further reflects the immense potential of the Company and its robust capabilities to capitalize on the opportunities ahead,” Goenka said.
He further said the company would continue to execute its strategic priorities while focusing on sustainable growth and shareholder returns. The company is also looking to strengthen its core businesses, accelerate digital growth, leverage technology-led innovations and explore new monetisation opportunities.
Buyback Process And Timeline
The board has constituted a buyback committee to oversee the process and appointed Emkay Global Financial Services as the manager to the offer. Sangeeta Shetty, Chief Compliance Officer and Company Secretary, has been appointed as the compliance officer for the buyback.
Under the proposal, 15 per cent of the shares proposed to be bought back, or the number of shares entitled to small shareholders based on their holdings, whichever is higher, will be reserved for small shareholders. The board or buyback committee may also increase the buyback price and reduce the number of shares before the record date, provided the overall buyback size remains unchanged.
The company said the public announcement and other documents detailing the buyback process, timelines and related requirements would be released in due course in accordance with Securities and Exchange Board of India regulations.
