Zee Entertainment completes ₹2,640 crore warrant allotment to promoter

Adgully Bureau
| 1 hour ago
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Shares of Zee Entertainment Enterprises Ltd. traded 0.9% lower at ₹106.63 on Monday after the company completed the allotment of 20.94 crore convertible warrants to Sunbright Mauritius Investments, a promoter group entity.

The warrants were issued at ₹126 each, with the company receiving ₹659.8 crore upfront. Upon full conversion of the warrants, Zee Entertainment is set to receive an additional ₹2,639 crore at the same issue price.

The allotment is part of a larger preferential issue approved by the company’s shareholders. Shareholders had approved the issuance of 24.94 crore warrants to the promoter group for a total consideration of ₹3,143.52 crore. The resolution received 76.6% of the votes polled.

Following the allotment and full conversion of the warrants, the promoter group’s holding in Zee Entertainment is expected to increase to 17.9% on a fully diluted basis. This compares with the 23.79% stake for which shareholders had approved the issue.

The development comes amid regulatory proceedings involving Zee Entertainment and its promoters. The Securities and Exchange Board of India had barred Zee Entertainment from accessing the securities market for two months, while promoters Subhash Chandra and Punit Goenka were barred for 12 months each.

The SEBI action related to the use of Zee Entertainment’s Hyderabad property as security for ₹726 crore of borrowings by four Essel Group entities. SEBI had stated that the transaction did not receive the required approvals from the company’s board and audit committee and had cited violations of the PFUTP and LODR regulations.

The Securities Appellate Tribunal granted interim relief to Zee Entertainment on August 14 by staying the SEBI order against the company. The tribunal also permitted the company to proceed with the proposed ₹3,143 crore preferential warrant issue to the promoters.

Zee Entertainment’s shares have gained 17.9% so far in 2026, despite the ongoing regulatory proceedings.

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Media24-Aug-2026ZEE Entertainment

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