ZEE considers offer to raise funds through equity or other means on June 6
If approved, fundraising will be conducted through a variety of methods, including qualified institutional placements, preferred issuances or other methods.
“The Board of Directors is scheduled to meet on June 6 and will consider raising funds by issuing equity and/or other eligible securities through acceptable means, including but not limited to private placements, eligible securities, institutional placements, etc. preferential treatment or any other method or combination of methods,” the company said in the filing.
The fundraising proposal comes after Sony canceled its $10 billion merger earlier this year, ending a deal that could have created an Indian TV giant.
ZEE has since announced a number of measures to cut costs and reduce business losses, including a 15% workforce reduction. In the latest fourth quarter, the company reported a profit of Rs 13.35 crore compared to a loss a year ago. Driven by the continued recovery in the macro advertising environment and recovery in spending in the fast-moving consumer goods sector (FMCG), domestic advertising revenue increased approximately 11% year-on-year in the quarter. ) customer. The company took restructuring-related charges of Rs 21.97 crore during the quarter.
Karan Taurani, media analyst at Elara Capital, said that on the operational front, Zee has done a reasonable job with increased tariff order prices and increased advertising revenue.
“Higher costs to implement interventions, most of which are one-time, will offset underlying operating performance improvements and slow margins in the first quarter,” the company said in its earnings call.
On Monday, ZEE’s share price closed over 5 per cent higher at Rs 156.75 on the NSE.
