Zee Media raises ₹19 crore as FPI converts 3 crore preferential warrants into equity

Zee Media Corporation has allotted 3 crore equity shares to foreign portfolio investor (FPI) Sun India Opportunities Investing Fund Incorporated VCC Sub-Fund following the partial conversion of warrants issued on a preferential basis, raising ₹19.12 crore through the exercise of the balance payment due on the securities.

In a regulatory filing on Tuesday, the company said its board approved the allotment of 3,00,00,000 fully paid-up equity shares of face value ₹1 each after the investor exercised its right to convert 3 crore warrants out of the total 5 crore warrants allotted to it under the preferential issue announced earlier.

The investor remitted ₹19.125 crore, representing the balance 75% of the warrant issue price of ₹8.50 per warrant, to complete the conversion. Under the terms of the issue, investors had initially paid 25% of the warrant price at the time of allotment, with the remaining 75% payable upon conversion.

Following the conversion, Sun India Opportunities Investing Fund Incorporated VCC Sub-Fund continues to hold 2 crore outstanding warrants that remain eligible for conversion into equity shares within 18 months from the original allotment date of June 25, 2026.

The newly allotted shares will rank pari passu with the company's existing equity shares and will be listed on both the National Stock Exchange and the BSE after the receipt of the requisite listing and trading approvals from the exchanges.

The allotment has increased Zee Media's issued, subscribed and paid-up equity share capital from ₹62.54 crore, comprising 62.54 crore equity shares of face value ₹1 each, to ₹65.54 crore consisting of 65.54 crore fully paid-up equity shares.

According to the company, the equity shares have been issued at ₹8.50 per share, including a premium of ₹7.50 per share. The warrants were also originally issued at the same price under the preferential allotment in accordance with the Companies Act, 2013 and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

The company said that after the present allotment, Sun India Opportunities Investing Fund Incorporated VCC Sub-Fund will hold 3 crore equity shares, translating into a 3.33% stake on a fully diluted basis, assuming conversion of all outstanding warrants issued by the company.

Zee Media clarified that the fully diluted shareholding calculation assumes complete conversion of all 13.5 crore outstanding warrants. These include 4.5 crore warrants each held by Magnifica Global Opportunities VCC – MGO High Conviction Fund Incorporated VCC Sub-Fund and Minerva Ventures Fund, in addition to the remaining 2 crore warrants held by Sun India Opportunities Investing Fund. The company noted that the final shareholding could vary depending on whether all outstanding warrants are ultimately converted.

The preferential allotment involved a single investor in the current tranche. Zee Media stated that there has been no cancellation or termination of the proposed issuance, and the remaining warrants continue to be available for conversion within the stipulated period.

The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and follows the company's earlier intimation on June 25 regarding the allotment of fully convertible warrants to foreign portfolio investors classified under the public category.