Zee Media Shares Locked In Upper Circuit After Board Approves Rs 200-Crore Fundraise
Zee Media will hold an extraordinary general meeting on Oct. 22 to seek shareholder approval for the issuance of the warrants.
(Source: Zee Media Corporation Official Website)
The share price of Zee Media Corp. hit an upper circuit of 10% on Friday as the board of directors approved a proposal to raise up to Rs 200 crore through the issuance of warrants.
At a meeting earlier in the day, the board gave a nod to issue up to 13.33 crore fully convertible warrants at an issue price of Rs 15 each. Each warrant entitles the holder to convert it into an equity share of the company, which will also be priced at Rs 15, according to an exchange filing.
The fundraising effort aims to attract investments from non-promoter entities, adhering to the SEBI (Issue of Capital and Disclosure Requirements) Regulations and the Companies Act.
Under the proposal, 25% of the issue price will be payable upon the subscription and allotment of the warrants, while the remaining 75% will be due when the holders decide to exercise their options within 18 months.
To finalise this initiative, Zee Media will hold an extraordinary general meeting on Oct. 22 to seek shareholder approval for the issuance of the warrants. The announcement marks a significant step in the company's strategy to strengthen its capital base.
Shares of Zee Media rose as much as 9.96% to Rs 20.75 apiece on the NSE. It was locked at the same level as of 2:37 p.m., compared to a 0.23% advance in the benchmark Nifty.
The share price has risen 63.39% in the last 12 months. The total traded volume so far in the day stood at 7.3 times its 30-day average. The relative strength index was at 86.6, indicating that the stock was overbought.
