(You can now subscribe to our(You can now subscribe to our ETMarkets WhatsApp channelThe Board of ZEE on Thursday accorded in-principle approval to raise funds up to Rs 2,000 crore by way of issuance of equity shares or any other eligible securities The proposed fundraising will be done in one or more tranches.
"The Board of Directors at its meeting held today considered and given its in-principle approval for raising funds by way of issuance of equity shares or any other eligible securities provided that the aggregate amount shall not exceed Rs 2,000 crore," the company said in a filing.The fundraise will be not limited to a private placement, a QIP, a preferential issue, or any other method or combination of methods.The fundraising proposal comes after Sony scrapped its $10 billion merger earlier in January this year, ending a deal that would have created an Indian TV juggernaut.ZEE has since then announced a slew of measures to cut costs and reduce losses in its business, including cutting 15% of its workforce.
The company had announced a strategic realignment of its revenue vertical, which the MD and CEO drive directly.The board has also decided to closely monitor the business model and plan presented by the MD & CEO of the company, wherein he has provided the roadmap to improve the performance and efficiency of each of the businesses to achieve higher EBITDA.In the recent fourth quarter, the company reported a profit of Rs 13.35 crore against a loss a year ago, helped by strong demand for advertising and a fall in expenses.Domestic advertising revenue for the quarter rose nearly 11% year-on-year, driven by the continued recovery in the macro advertising environment and spending pickup by FMCG (fast-moving consumer goods) clients.The company took a restructuring-related charge of Rs 21.97 crore during the quarter.Operation-wise, Zee has done a reasonable job with tariff order price hikes and advertising revenue growth, said Karan Taurani, media analyst at Elara Capital "Will see most one-time higher costs towards implementing the interventions, offsetting underlying operating performance improvements and causing softness on margins for the first quarter," the company had said in its earnings filing.On Thursday, shares of ZEE were trading over 5% higher at Rs 153 on NSE.
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(You can now subscribe to our ETMarkets WhatsApp channel
The Board of ZEE on Thursday accorded in-principle approval to raise funds up to Rs 2,000 crore by way of issuance of equity shares or any other eligible securities The proposed fundraising will be done in one or more tranches."The Board of Directors at its meeting held today considered and given its in-principle approval for raising funds by way of issuance of equity shares or any other eligible securities provided that the aggregate amount shall not exceed Rs 2,000 crore," the company said in a filing.The fundraise will be not limited to a private placement, a QIP, a preferential issue, or any other method or combination of methods.The fundraising proposal comes after Sony scrapped its $10 billion merger earlier in January this year, ending a deal that would have created an Indian TV juggernaut.ZEE has since then announced a slew of measures to cut costs and reduce losses in its business, including cutting 15% of its workforce. The company had announced a strategic realignment of its revenue vertical, which the MD and CEO drive directly.The board has also decided to closely monitor the business model and plan presented by the MD & CEO of the company, wherein he has provided the roadmap to improve the performance and efficiency of each of the businesses to achieve higher EBITDA.In the recent fourth quarter, the company reported a profit of Rs 13.35 crore against a loss a year ago, helped by strong demand for advertising and a fall in expenses.Domestic advertising revenue for the quarter rose nearly 11% year-on-year, driven by the continued recovery in the macro advertising environment and spending pickup by FMCG (fast-moving consumer goods) clients.The company took a restructuring-related charge of Rs 21.97 crore during the quarter.Operation-wise, Zee has done a reasonable job with tariff order price hikes and advertising revenue growth, said Karan Taurani, media analyst at Elara Capital "Will see most one-time higher costs towards implementing the interventions, offsetting underlying operating performance improvements and causing softness on margins for the first quarter," the company had said in its earnings filing.On Thursday, shares of ZEE were trading over 5% higher at Rs 153 on NSE.
