Zee Shareholders Back $330 Million Raise as SEBI Bans 2 Executives Over $76 Million Loan Pledge
Updated
Updated · Variety · Aug 3
Zee Shareholders Back $330 Million Raise as SEBI Bans 2 Executives Over $76 Million Loan Pledge
1 articles · Updated · Variety · Aug 3
Summary
$330 million in fresh capital won shareholder approval at Zee, with investors backing 249.5 million warrants for a promoter entity and an employee stock option plan.
SEBI then barred Zee from the securities market for two months and chair emeritus Subhash Chandra and CEO Punit Goenka for 12 months each, while levying INR1.48 crore in penalties.
The order stems from a 2018 pledge of Zee's Hyderabad property to secure INR726 crore in loans for four Essel-linked entities, a transaction SEBI said was neither disclosed to nor approved by Zee's board.
Zee said it is reviewing the order with legal counsel but does not expect the sanctions to derail the fund raise, which would lift promoter ownership to 23.79% once the warrants are exercised.
The capital is earmarked through fiscal 2029 for sports, acquisitions, digital content, AI and microdrama, extending Zee's post-Sony-merger-collapse push after workforce cuts and a FIFA rights deal.