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As Zee eyes ₹2,237 crore increase, Chandra dismisses loans and pledges amid governance push


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Zee Leisure Enterprises Restricted (ZEEL) Chairman Emeritus Subhash Chandra on July 3 clarified that the promoter group will neither elevate debt nor pledge shares to finance the proposed ₹2,237 crore fund infusion into the corporate by means of warrants.

Chandra made the feedback throughout a name exceeding 90 minutes with analysts and buyers, which ZEEL described as a part of its ongoing efforts to reinforce company governance and shareholder engagement.

“No, we aren’t taking any loans, nor are we pledging any shares. The funds being utilised are our personal — they’re recoveries from promoter-linked entities, which have come again to us,” Chandra informed analysts and shareholders.

The promoter group’s deliberate funding has drawn scrutiny from proxy-advisory companies, as it might elevate the shareholding of Punit Goenka and his household from 3.99 p.c to 18.39 p.c. ZEEL shareholders are scheduled to vote on the particular decision between July 6 and July 9.

ZEEL is ready to obtain ₹2,237.4 crore by means of a preferential allotment of totally convertible warrants, with the corporate proposing to challenge 16.95 crore warrants at ₹132 every, topic to shareholder approval.

The corporate said that this capital infusion is a part of a broader technique to strengthen its monetary base and drive long-term progress, notably in content material innovation and digital infrastructure. Administration believes the contemporary capital will assist stabilise the stability sheet and help new initiatives in India’s evolving leisure sector, together with digital-first content material and platform investments geared toward creating shareholder worth.

Chandra acknowledged ZEEL’s present money reserves of round ₹2,400 crore however confused the necessity for added capital to stay aggressive.

In keeping with reviews, Chandra doesn’t intend to attend the complete 18-month interval allowed to usher in the warrant funds, aiming as a substitute to infuse your entire quantity as early as potential. Below the warrant phrases, 25 p.c of the funds are payable upfront, with the remaining 75 p.c due inside 18 months.