Zee Entertainment approves Rs 600-crore share buyback at Rs 91 apiece; promoters to stay out
Zee Entertainment has approved a Rs 600 crore share buyback at Rs 91 per share, a 24% premium over its latest NSE closing price. The company will repurchase up to 6.59 crore shares through the tender offer route, with November 25 fixed as the reco...
By Kumar Gaurav, |
Reuters
Zee Entertainment Enterprises Ltd (ZEEL) on Thursday approved a share buyback worth up to Rs 600 crore at Rs 91 per equity share, representing a premium of around 24% over its closing price of Rs 73.50 on the NSE.
The company's board approved the buyback of up to 6,59,34,065 fully paid-up equity shares with a face value of Re 1 each through the tender offer route. The buyback price of Rs 91 per share is payable in cash, while the total buyback size will not exceed Rs 600 crore.
The proposed buyback represents 7.22% and 6.61% of the aggregate paid-up equity share capital and free reserves, based on the company's standalone and consolidated audited financial statements, respectively, as of March 31, 2026, according to its regulatory filing.
The board has fixed November 25, 2026, as the record date to determine shareholder eligibility for participation in the buyback. The company will undertake the offer on a proportionate basis, with the reservation for small shareholders to be determined in accordance with Securities and Exchange Board of India (SEBI) regulations.
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The promoters and members of the promoter group have indicated that they will not participate in the proposed buyback.
Zee Entertainment said the board's decision followed a review of the company's financial strength, free cash flow and business outlook, as well as deliberations on alternative routes and feedback from investors and shareholders.
"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," R Gopalan, chairman of Zee Entertainment, said.
He added that the board had assessed the company's financial position, growth plans and shareholder expectations. Management also presented its approach to medium- and long-term growth, with a focus on strengthening the company's topline and bottomline.
Punit Goenka, chief executive officer of Zee Entertainment, said the company had taken steps to strengthen its capabilities, sharpen its strategic focus across content, digital and emerging growth opportunities, and improve operational efficiencies.
The company said it would continue to focus on strengthening its core businesses, accelerating digital growth, deploying technology-led innovations across platforms and exploring new monetisation opportunities.
The board has constituted a buyback committee and delegated powers to it to undertake the necessary actions in connection with the offer. Sangeeta Shetty, chief compliance officer and company secretary, has been appointed compliance officer for the buyback, while Emkay Global Financial Services has been appointed manager to the offer.
The board or the buyback committee may increase the buyback price and correspondingly reduce the number of shares proposed to be bought back, without changing the overall buyback size, up to one working day before the record date, in accordance with applicable regulations.
The company said the public announcement and other documents detailing the process and timelines would be issued in due course.
Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
The company's board approved the buyback of up to 6,59,34,065 fully paid-up equity shares with a face value of Re 1 each through the tender offer route. The buyback price of Rs 91 per share is payable in cash, while the total buyback size will not exceed Rs 600 crore.
The proposed buyback represents 7.22% and 6.61% of the aggregate paid-up equity share capital and free reserves, based on the company's standalone and consolidated audited financial statements, respectively, as of March 31, 2026, according to its regulatory filing.
The board has fixed November 25, 2026, as the record date to determine shareholder eligibility for participation in the buyback. The company will undertake the offer on a proportionate basis, with the reservation for small shareholders to be determined in accordance with Securities and Exchange Board of India (SEBI) regulations.
ALSO READ: Ola Electric Q2 Results: Loss narrows YoY to Rs 362 crore, revenue falls 39%
The promoters and members of the promoter group have indicated that they will not participate in the proposed buyback.
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Zee Entertainment said the board's decision followed a review of the company's financial strength, free cash flow and business outlook, as well as deliberations on alternative routes and feedback from investors and shareholders.
"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," R Gopalan, chairman of Zee Entertainment, said.
He added that the board had assessed the company's financial position, growth plans and shareholder expectations. Management also presented its approach to medium- and long-term growth, with a focus on strengthening the company's topline and bottomline.
Punit Goenka, chief executive officer of Zee Entertainment, said the company had taken steps to strengthen its capabilities, sharpen its strategic focus across content, digital and emerging growth opportunities, and improve operational efficiencies.
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The company said it would continue to focus on strengthening its core businesses, accelerating digital growth, deploying technology-led innovations across platforms and exploring new monetisation opportunities.
The board has constituted a buyback committee and delegated powers to it to undertake the necessary actions in connection with the offer. Sangeeta Shetty, chief compliance officer and company secretary, has been appointed compliance officer for the buyback, while Emkay Global Financial Services has been appointed manager to the offer.
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The board or the buyback committee may increase the buyback price and correspondingly reduce the number of shares proposed to be bought back, without changing the overall buyback size, up to one working day before the record date, in accordance with applicable regulations.
The company said the public announcement and other documents detailing the process and timelines would be issued in due course.
Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
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