Zee Entertainment gets govt nod for Rs 418-cr investment from Invesco fund

MUMBAI: Zee Entertainment Enterprises Ltd. (ZEEL) has received government approval for a Rs 418-crore (about $46.03 million) foreign investment from OFI Global China Fund LLC, according to data released by the Department for Promotion of Industry and Internal Trade (DPIIT).

The move marks the return of the Invesco-managed fund to the broadcaster's shareholder base, nearly three years after it exited the company.

According to DPIIT data, the investment was received under the foreign direct investment (FDI) route for acquisition of shares during the January-March quarter of FY26.


The proposal was among 1,141 such FDI proposals cleared by the department during the quarter.

The investment comes as Zee continues to navigate a challenging operating environment in its core television broadcasting business, while its digital business has reported operational profitability following cost rationalisation and revenue growth.

Invesco had exited Zee in 2023 after a prolonged corporate governance dispute. In April 2023, OFI Global China Fund LLC sold its 5.11% stake in ZEEL through block deals worth about Rs 1,004 crore by offloading 49.1 million shares at Rs 204.50 a share.

On Monday, Zee’s shares closed at Rs 107.17 on the BSE, down by nearly 3.8%.

Invesco had earlier sought the removal of CEO Punit Goenka from the board and requisitioned an extraordinary general meeting to reconstitute the company's board. After initially opposing it, the fund later backed the proposed merger between Zee Entertainment and Sony Pictures Networks India before eventually exiting its investment through a series of block deals.

At its peak, Invesco was Zee's largest shareholder with a nearly 18% stake after acquiring an 11% stake from the Goenka family for Rs 4,224 crore.

The proposed merger between Sony Pictures Networks India and Zee was terminated in January 2024 after the parties failed to reach an agreement on the transaction, including differences over the leadership of the combined entity. Following the collapse of the deal, Zee undertook cost-rationalisation measures, including workforce reductions.

Separately, in early June, Zee's board approved a proposal to raise at least Rs 2,300 crore in one or more tranches to support strategic and business initiatives and strengthen its balance sheet. The company has said the board will further evaluate the fundraising options.

The fundraising plans come as Zee broadens its content portfolio and rebuilds its sports business. Earlier this year, the company secured the media rights for FIFA competitions in the Indian subcontinent, marking its return to sports broadcasting after exiting the segment through the sale of Ten Sports to Sony nearly a decade ago for $385 million.

Earlier this year, Zee also cancelled the unutilised portion of its proposed $239 million foreign currency convertible bond (FCCB) programme, amounting to $215.1 million, after investors cited geopolitical developments and changes in capital allocation priorities. The company redeemed the remaining outstanding FCCBs worth $23.9 million.

Meanwhile, FDI into India's information and broadcasting sector rose by 30.2% year-on-year to Rs 7,824 crore in FY26 from Rs 6,007.81 crore in FY25, according to DPIIT data.

Quarterly inflows, however, remained broadly stable, with FDI during the January-March quarter easing marginally to Rs 1,213 crore from Rs 1,222 crore in the corresponding quarter of the previous year.

The increase in annual inflows was largely driven by VFX and post-production company Prime Focus, which attracted Rs 5,233.33 crore during FY26, accounting for nearly two-thirds of the sector's total FDI.