Zee Entertainment Approves $239 Million FCCBs for Private Placement

On Tuesday, Zee Entertainment Enterprises Limited (ZEEL) announced that its Securities Issue and Allotment Committee has approved the allotment of foreign currency convertible bonds (FCCBs) worth $239 million. This move aims to raise significant capital through private placement.

In a regulatory filing, ZEEL revealed that the FCCBs, totaling approximately ₹2,000 crore, will mature in 10 years. The allotment will be made to Resonance Opportunities Fund, St. John’s Wood Fund Ltd, and Ebisu Global Opportunities Fund. The decision follows the ZEEL board’s earlier approval on July 16 to raise up to $239 million through these bonds, offering a coupon rate of 5 percent.

These FCCBs will not be listed on any stock exchanges. However, investors opting to convert their bonds into shares will do so at a price of ₹160.20 per share. If all FCCBs are converted, the total number of equity shares issued would amount to approximately 124,670,576 shares of ₹1 each.

This fundraising initiative is ZEEL’s first major financial maneuver since Sony Corporation withdrew from its planned merger with ZEEL’s entertainment assets in India. The company had previously sought approval from its shareholders to raise ₹2,000 crore through various means, including equity shares and qualified institutional placements (QIPs).

The successful issuance of these FCCBs underscores ZEEL’s ongoing efforts to bolster its financial position amidst evolving market conditions.

Headline Options:

1. Zee Entertainment Secures $239 Million via FCCBs in Private Placement
2. ZEEL Approves $239 Million FCCB Allotment to Raise Capital
3. Zee Entertainment’s $239 Million FCCB Issue Approved Amidst Sony Merger Exit