Zee Entertainment cancels $215 million FCCBs after bondholders seek exit amid geopolitical tensions

Zee Entertainment Enterprises has cancelled $215.1 million in unutilised Foreign Currency Convertible Bonds (FCCBs) after bondholders sought an exit, citing geopolitical uncertainty and changes in capital allocation strategy.

In a regulatory filing on March 26, the company said its board approved the request, noting that the move could have a positive impact on its treasury, subject to regulatory and contractual requirements.

The company has also approved the redemption of $23.9 million in outstanding FCCBs.


The bonds were part of a $239 million programme approved in July 2024. They were structured as 5% coupon, unsecured and unlisted FCCBs with a 10-year maturity, to be issued in multiple tranches to offshore investors, including Resonance Opportunities Fund, St. John’s Wood Fund and Ebisu Global Opportunities Fund.

Zee raised $23.9 million in the first tranche and allotted 23,900 bonds of $1,000 each in August 2024. These are the only outstanding FCCBs and will now be redeemed. The bonds carried an option to convert into equity at Rs 160.20 per share, subject to approvals.

Separately, the board approved an internal restructuring of the content business. Zee will transfer its content syndication and licensing division to its wholly owned subsidiary, ZI-IPR Enterprises, through a slump sale at book value, effective April 1, 2026.

To support the subsidiary, Zee will invest Rs 505 crore, including Rs 500 crore in optionally convertible debentures and Rs 5 crore in equity, as it sharpens focus on content ownership and intellectual property monetisation.

The company has also approved an investment of up to Rs 20.09 crore for up to a 51% stake in CORE Pvt Ltd, a recently incorporated entity in the creative and experiential entertainment segment, as part of diversification efforts.