Zee Telefilms has dropped its plan of $1.5 billion American Depository Receipt (ADR) issue. The media conglomerate had been dilly-dallying on its ADR issue for quite some time now, lately even announcing plans to reduce it to $200 million.
Zee Telefilms move to rope in a strategic partner is in lieu of the company dropping plans for the ADR, in the pipeline since last year. The company may also have to delay plans for getting its broadcasting functions under one umbrella. This is because the company has to comply with the 49 per cent FDI cap in the media sector, when it ropes in the international strategic partner.