Z shareholders approve fund-raising and ESOP allotment

Zee Entertainment Enterprises Ltd. (‘Z’) in an Extraordinary General Meeting (EGM) conducted on Friday secured the requisite support of its shareholders for the resolution to issue fully convertible warrants to a promoter group entity on a preferential basis.

The shareholders have also approved the resolutions to implement the ‘Truly Yours’ Employee Stock Option Plan (ESOP) for the Human Capital of ‘Z’ and its subsidiary companies.

Further to the approval received from the shareholders, ‘Z’ will issue 24,94,85,563 warrants to promoter group entity on a preferential basis, at Rs. 126 per warrant. The promoters will invest Rs. 3143.5 crores in the Company, eventually elevating the total promoter shareholding to 23.79%.

The Company will also implement the ‘Truly Yours’ Employee Stock Option Plan (ESOP) by granting 3,74,22,835 stock options to eligible employees of ‘Z’ and its subsidiary companies, having face value of Re. 1 /- each, in one or more tranches.

Expressing his gratitude towards the shareholders, R Gopalan, Chairman, Zee Entertainment Enterprises Ltd. said, “This approval is a clear reflection of the shareholders’ belief in the Company and its management. I am grateful to the shareholders for expressing their whole-hearted support towards the Company’s strategic growth path. The Board’s decision and the subsequent shareholder approval, to enhance the foundation and resilience of the Company through promoter fund infusion, will further enable ‘Z’ to stay ahead of competition and generate higher value for all its stakeholders. I would also like to thank the shareholders for recognizing the immense contributions of ‘Z’s Human Capital and approving the Employee Stock Option Plan, that will only spur higher innovation and accountability to drive the Company forward. The Board firmly believes that robust growth capital coupled with enhanced promoter alignment, will serve as key enablers in ensuring long-term profitability in a dynamic business environment. With the approval of the key resolutions, the Company is on a furthermore solid footing to execute its future growth plans effectively.”

In its previous meetings, the Board of Directors had reviewed the Company’s growth plans for the future. During the meetings, the Board also deliberated upon the strategic alternatives to be undertaken in order to enhance the Company’s financial foundation, by enabling access to greater growth capital and ensuring long-term leadership continuity. Post a thorough and careful evaluation of all points, the Board had approved the enhancement of promoter shareholding and additional fund infusion to strengthen the Company’s capabilities to compete

effectively in a rapidly evolving landscape.