New Delhi: Zee Entertainment Enterprises Ltd (ZEEL) has confirmed that a recent SEBI order banning two of its promoters will not affect its planned fundraising. A company spokesperson stated on Sunday that ZEEL is obtaining legal advice and remains focused on completing the capital raise to bolster its financial standing.
“The Company is in receipt of the order issued by the Securities and Exchange Board of India (SEBI) and is seeking advice from legal experts on the same. The Company firmly believes that the order from SEBI has no direct bearing on the fund-raising exercise,” said ‘Z’ spokesperson.
According to the spokesperson, the company is moving forward with all required actions to execute the fundraising plan now that stock exchanges and shareholders have given their approval at the July 31, 2026 EGM. This step is intended to reinforce its financial foundation and generate ongoing value for stakeholders.
“With regards to the allegations levied against the Company and its Promoters, the required measures in accordance with the law will be taken, to protect the interest of all stakeholders,” added ‘Z’ spokesperson.
ZEEL fund raise and SEBI ban issue
At the July 31 EGM, shareholders approved the issue of 24,94,85,563 fully convertible warrants to a promoter group entity on a preferential basis at Rs 126 per warrant. The proposed transaction is expected to bring in around Rs 3,143.5 crore into the company and eventually take the total promoter shareholding to 23.79 per cent.
The shareholders also approved the ‘Truly Yours’ Employee Stock Option Plan (ESOP), involving 3,74,22,835 stock options for eligible employees and employees of subsidiary companies. Each stock option will have a face value of ₹1. The approval of key proposals further strengthens shareholder confidence in the company’s long-term potential, and the increased promoter stake also ensures leadership continuity. The ESOP framework aligns the growth ambitions of the company’s talent with the long-term expectations of shareholders, ensuring continued value creation for all stakeholders.