Zee Entertainment Enterprises Ltd announced that their Securities Issue and Allotment Committee has given approval for the allotment of foreign currency convertible bonds (FCCBs) valued at $239 million to investors. These FCCBs, maturing in 10 years, have been allotted to Resonance Opportunities Fund, St John's Wood Fund Ltd, and Ebisu Global Opportunities Fund on a private placement basis. The company also disclosed that the FCCBs, with a coupon rate of 5 per cent, will not be listed on any stock exchanges.
In the event that investors choose to convert their bonds into shares, they will be required to pay Rs 160.20 per share. Zee Entertainment Enterprises Ltd stated that if all FCCBs are converted, it will result in the issuance of 124,670,576 equity shares at a conversion price of Rs 160.20 per equity share. Earlier in July, ZEEL shareholders had approved a plan to raise Rs 2,000 crore through various methods, including issuing equity shares and qualified institutions placements (QIPs).
The company intends to raise funds in one or more tranches through avenues such as private placement, qualified institutional placement, preferential issue, or a combination of these methods. This fundraising round follows the termination of a merger deal between Sony Corporation and Zee Entertainment Enterprises Ltd regarding their entertainment entities in India.