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Zee secures Rs 659.76 crore from Sunbright Mauritius warrant allotment
Sunbright Mauritius has paid 25 per cent of the Rs 126 warrant price, with the balance due on exercise
MUMBAI: Zee has put its warrants where its money is, receiving Rs 659.76 crore upfront from promoter-group entity Sunbright Mauritius Investments Limited against the allotment of 20.94 crore fully convertible warrants.
Zee Entertainment Enterprises Limited disclosed the details in a filing with BSE Limited on August 24, along with an independent auditor’s certificate confirming compliance with Regulation 169(4) of the Securities and Exchange Board of India’s ICDR Regulations.
The auditor’s certificate, issued by Walker Chandiok & Co LLP, confirms that the consideration was received from Sunbright Mauritius’s bank account and that the relevant records were maintained by Zee as of August 21, 2026.
Sunbright Mauritius, classified as a promoter-group entity, was allotted 20,94,47,805 warrants at Rs 126 each.
The Rs 126 price comprises a subscription price of Rs 31.50 and an exercise price of Rs 94.50. The Rs 31.50 upfront payment represents 25 per cent of the total warrant price and was payable at the time of allotment.
The total amount received at allotment was Rs 659,76,05,857.50, or roughly Rs 659.76 crore.
The remaining Rs 94.50 per warrant will be payable when the warrants are exercised, giving Zee the potential to receive a further Rs 1,979.46 crore if all the warrants are converted and the balance consideration is paid.
The certificate was submitted by Zee under Regulation 169(5) of the ICDR Regulations. Walker Chandiok & Co LLP said it had conducted a limited assurance examination of the relevant statement and found nothing that would indicate that the reported details were materially inconsistent with the company’s books, records and supporting documents.
As part of its review, the auditor examined the board resolution approving the preferential issue, the special resolution passed by shareholders at the extraordinary general meeting on July 31, details of the warrant allotment and consideration received, and the resolution of the preferential issue and allotment committee approving the allotment on August 21.
It also reviewed bank statements provided by Zee for both the company and the allottee to verify that the consideration had been received from the allottee’s bank account. The auditor noted that it relied on information provided by management and did not conduct independent confirmation procedures.
The review also covered an inward remittance email from the recipient’s bank and representations and explanations provided by Zee’s management.
The preferential issue was approved by Zee’s board on July 1, 2026, before shareholders approved the related special resolution at the company’s extraordinary general meeting on July 31.
The preferential issue and allotment committee subsequently approved the allotment of the warrants on August 21.
The auditor concluded that Zee had complied with the applicable requirements of Chapter V of the ICDR Regulations, including sub-regulations (4) and (5) of Regulation 169.
The latest filing formally establishes the upfront receipt of Rs 659.76 crore from Zee’s promoter group. The larger piece of the warrant puzzle, however, remains the Rs 94.50 balance per warrant, which becomes payable if and when Sunbright Mauritius exercises its conversion rights.
