GECs
UTV Software Communications to list on 17 March
MUMBAI: UTV Software Communications Ltd’s IPO (initial public offering), which closed on 25 February with a total demand for 26.12 times the issue size of approximately seven million shares will list on 17 March 2005 at National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).
The company received bids for about 185 million shares and the size of the issue was Rs 910 million at the upper end (Rs 130) of the price band.
The Book Running Lead Manager to the Issue was Enam Financial Consultants Pvt. Ltd. with IL&FS Investsmart Ltd being the Co-Book Running Lead Manager. Karvy Computershare Pvt LTD was the Registrar to the Issue.
Merchant banking sources have added that over 2.85 lakh bids were received for the issue with the Qualified Institutional Buyers quota being oversubscribed 18.6 times, the Non-Institutional Buyers quota being oversubscribed 33.12 times and retail 35.9 times.
The proceeds from the IPO will be used for enhancement of production facility and office infrastructure, investment in Hungama TV, funding of SFX and post-production expansion, investment in movie production and distribution initiatives and general corporate purposes.
The issue comprised a fresh equity of 4,500,000 shares of Rs 10 each and offer for sale by CDPQ, a Canadian private equity investor, of 2,499,950 equity shares of Rs 10 each for cash. 349,950 equity shares were reserved for employees on a competitive basis with a net issue to the public of 6,650,000 equity shares. The net issue to public constituted 34.11 per cent of the fully diluted post issue paid-up capital of the company.
GECs
Sebi sends show-cause notice to Zee over fund diversion, company responds
Regulator questions 2018 letter of comfort and governance lapses; company vows robust legal response
MUMBAI: India’s markets watchdog has reignited its long-running scrutiny of Zee Entertainment Enterprises, issuing a sweeping show-cause notice that drags the broadcaster and 84 others into a widening governance storm.
The notice, dated February 12, has been served by the Securities and Exchange Board of India to Zee, chairman emeritus Subhash Chandra and managing director and chief executive Punit Goenka, among others. At its heart: allegations that company funds were indirectly routed to settle liabilities of entities linked to the Essel Group.
The regulator’s probe traces its roots to November 2019, when two independent directors resigned from Zee’s board, flagging concerns over the alleged appropriation of fixed deposits by Yes Bank. The deposits were reportedly adjusted against loans extended to Essel Group entities, triggering questions about related-party dealings and board oversight.
A key flashpoint is a letter of comfort dated September 4, 2018, issued by Subhash Chandra in his dual capacity as chairman of Zee and the Essel Group. The document, linked to credit facilities availed by certain group companies from Yes Bank, was allegedly known only to select members of management and not disclosed to the full board—an omission SEBI believes raises red flags over transparency and governance controls.
Zee has pushed back hard. In a statement, the company said it “strongly refutes” the allegations against it and its board members and will file a detailed response. It expressed confidence that SEBI would conduct a fair review and signalled readiness to pursue all legal remedies to protect shareholder interests.
The notice marks the latest twist in a saga that has shadowed the broadcaster since 2019. What began as boardroom unease has morphed into a full-blown regulatory confrontation. The final reckoning now rests with SEBI—but the reputational stakes for Zee, and the message for India Inc on governance discipline, could scarcely be higher.
