ZMCL approves $46.59 million FCCB issue to support growth plans

The fundraising will be done through a private placement route; bonds will be issued to UNICO Global Opportunities Fund Limited and Sun India Opportunities Investing Fund, the company said

by e4m Staff
Published: Apr 9, 2025 8:36 AM | 1 min read

Zee Media Corporation Limited (ZMCL) has announced that its Board of Directors has approved the issuance of Foreign Currency Convertible Bonds (FCCBs) worth $46.59 million.

The fundraising will be done through a private placement route and is aimed at supporting the company's growth initiatives and strengthening operational capabilities.

According to a regulatory filing the FCCBs will carry an annual coupon rate of 5% and will mature over a period of 10 years. The bonds will be issued to UNICO Global Opportunities Fund Limited and Sun India Opportunities Investing Fund.

The conversion price for the bonds has been fixed at Rs13.50 per equity share, which includes a premium of Rs12.50 over the face value of Re1.

The company stated that the funds raised through this FCCB issuance will be used to fuel its expansion strategies. While Zee Media did not detail specific areas of investment, the move comes at a time when the media sector is witnessing increasing competition and evolving business models, particularly in digital and broadcasting.

The proposed issuance is subject to shareholder approval and other statutory clearances. The FCCB route provides the company with access to foreign capital while offering investors the option to convert their holdings into equity at a later stage, aligning with Zee Media’s long-term capital structure plans.