Zee board okays Rs 1,997 cr raise via convertible debt

Mumbai: The board of Zee Entertainment Enterprises has given its approval to raise ₹1,997 crore ($239 million) from Resonance Opportunities Fund, St. John's Wood Fund Limited, and Ebisu Global Opportunities Fund by issuing foreign currency convertible bonds (FCCBs) on a private placement basis.

In a regulatory filing, the company said it will issue unsecured, unlisted FCCBs, which will mature in 10 years, at a 5% coupon per year. The FCCBs will be split into 10 series, and the proceeds will be drawn in tranches, it added.

On conversion of FCCBs to equity, Zee will issue 1,240 million fully diluted equity shares of ₹1 each to the FCCB holders at the conversion price of ₹160.20 per equity share. The date of issuance of FCCBs was July 16, and the floor price was ₹152.45 per share. The dollar-to-rupee conversion rate has been fixed at ₹83.5658 per US dollar.


Analysts say the fundraise will give Zee the much-needed capital to compete in the market, which is going through a consolidation phase.