Zee Media board approves Rs 119 crore fund raise through warrant issue

MUMBAI: Zee Media Corporation Limited plans to raise up to Rs 119 crore through a preferential issue of convertible warrants, as the broadcaster looks to strengthen its capital position and support future growth initiatives.

The company’s board approved the proposal during its meeting held on May 18, alongside the re-appointment of Swetha Gopalan as an independent director for a second five-year term.

Under the approved plan, Zee Media will issue up to 14 crore warrants at a price of Rs 8.50 per warrant, aggregating to a total issue size of Rs 119 crore. Each warrant will be convertible into one fully paid-up equity share of the company within 18 months from the date of allotment.

The issue will be carried out on a preferential basis in accordance with provisions under the Companies Act and regulations laid down by the Securities and Exchange Board of India.

The warrants are being allotted to three foreign portfolio investor entities that fall under the non-promoter and non-promoter group category.

These include Magnifica Global Opportunities VCC-MGO High Conviction Fund Incorporated VCC Sub-Fund, Minerva Ventures Fund and Sun India Opportunities Investing Fund Incorporated VCC Sub-Fund.

As per the company’s disclosure, 25 per cent of the warrant issue price will be payable upfront at the time of allotment, while the remaining 75 per cent will be payable upon conversion into equity shares.

Post conversion, the proposed allottees are expected to hold meaningful stakes in the company on a fully diluted basis. Magnifica Global Opportunities VCC-MGO High Conviction Fund Incorporated VCC Sub-Fund is projected to hold 5.04 per cent, Minerva Ventures Fund 5.16 per cent and Sun India Opportunities Investing Fund Incorporated VCC Sub-Fund 5.55 per cent.

The company noted that the warrant pricing was determined after considering valuation and pricing reports prepared by a registered valuer in line with SEBI ICDR regulations.

The board also approved the re-appointment of Swetha Gopalan as an independent director from August 1, 2026 to July 31, 2031, subject to shareholder approval.

Gopalan currently serves on the board and will complete her present term on July 31, 2026.

She holds a Bachelor of Technology degree in Industrial Biotechnology from Anna University, a management qualification from Sikkim Manipal University and an MBA from the Kellogg School of Management in the United States. She also holds a certification in quantitative finance from FITCH.

Her professional experience includes roles at Johns Hopkins Medicine International in the US, Parkway Health and Noble Group in Singapore, and later at Tata Consultancy Services in the US as a business analyst.

The company has also called an extraordinary general meeting on June 13, 2026 through video conferencing and audio-visual means to seek shareholder approval for both the warrant issue and Gopalan’s re-appointment.

For Zee Media, the move signals another attempt to shore up resources and steady the balance sheet at a time when media companies continue navigating a rapidly shifting advertising and news consumption landscape.