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Zee says SEBI order will not derail Rs 3,144 crore fund raise, weighs legal options
Broadcaster says capital raise will proceed despite market regulator’s action against company
Mumbai: It’s business as usual, at least as far as fundraising is concerned. Zee Entertainment Enterprises Limited has said the recent order issued by the Securities and Exchange Board of India will have no direct impact on its proposed Rs 3,144 crore fund-raising exercise, even as the company seeks legal advice on the regulator’s findings.
In a statement issued on Sunday, Zee said it has received SEBI’s final order and is evaluating it with legal experts. The broadcaster maintained that the regulatory action does not affect its plans to strengthen its balance sheet through the proposed capital raise.
The company said it had already secured the necessary approvals from the stock exchanges and shareholders at its extraordinary general meeting held on July 31, 2026. It added that it would continue taking all required steps to complete the fundraising exercise, which it described as an initiative aimed at reinforcing its financial foundation and creating long-term value for stakeholders.
Zee also said it would take all necessary measures available under law in response to the allegations against the company and its promoters to safeguard the interests of its stakeholders.
The clarification comes days after SEBI passed its final order in a case relating to the alleged unauthorised mortgage of the company’s Hyderabad property as collateral for loans availed by promoter-linked Essel Group entities.
The market regulator barred Zee from accessing the securities market for two months and prohibited managing director and chief executive officer Punit Goenka and founder-chairman emeritus Subhash Chandra from dealing in the securities market for one year. SEBI also imposed monetary penalties on the company and the two executives.
According to the regulator’s order, Zee’s Hyderabad property was allegedly pledged without the knowledge or approval of the company’s board, audit committee or shareholders, and the transaction was not adequately disclosed. The case relates to loans availed by promoter-linked Essel Group companies, for which the property was allegedly used as collateral.
Despite the regulatory action, Zee has maintained that its fundraising plans remain on track. The company said it is assessing the legal, financial and operational implications of SEBI’s order while continuing with the approved capital-raising process, signalling that it intends to pursue both its legal remedies and its financial strategy in parallel.
