ZMCL to use Rs 75 crore funding for repaying existing liabilities

Zee Media Corporation Limited has disclosed the proposed utilisation of the Rs 119 crore it plans to raise through a preferential issue of fully convertible warrants, ahead of an Extraordinary General Meeting (EGM) scheduled for June 13, 2026.

In a communication submitted to the BSE and NSE on June 2, the company said it had issued a corrigendum to its EGM notice after the National Stock Exchange of India sought additional clarifications regarding the objectives of the proposed fundraising exercise while reviewing the company's application for in-principle approval.

The company had originally issued the EGM notice on May 22, 2026, for a meeting to be held through video conferencing and other audio-visual means. Following regulatory queries, Zee Media circulated the corrigendum electronically to shareholders on June 2.

According to the revised disclosure, the largest portion of the proceeds, Rs 75 crore, will be used to repay existing liabilities. These include dues payable to marketing vendors and distribution partners, payments related to domestic and international transponder services, repayment of working capital facilities availed from banks, and other short-term obligations.

The company has earmarked Rs 25 crore towards capital expenditure aimed at strengthening its infrastructure and technology capabilities. Planned investments include the purchase of new broadcast equipment, newsroom upgrades, and replacement of existing assets.

The remaining Rs 19 crore will be allocated for general corporate purposes and future business expansion initiatives. Zee Media said the funds may also be utilised to support existing businesses, pursue new opportunities, and provide financial assistance to subsidiaries, subject to necessary board approvals and compliance with applicable regulations.

The fundraising proposal involves the issuance of fully convertible warrants on a preferential basis to non-promoter and non-promoter group entities and will be placed before shareholders for approval at the upcoming EGM.

The company said the corrigendum forms an integral part of the EGM notice and should be read in conjunction with the original notice dated May 18, 2026. It has requested shareholders and other stakeholders, including stock exchanges, depositories, registrars, e-voting agencies and regulatory authorities, to take note of the amendments.

The corrigendum has been made available on the company's website as well as on the websites of the BSE, NSE and NSDL. The disclosure was signed by Ranjit Srivastava, Company Secretary and Compliance Officer.