Zee Entertainment promoters will invest Rs 2200 crore in the company, shares will be in focus on Friday:

News Topical, Digital Desk : Zee Entertainment shareholders have approved a plan for a fresh capital investment of Rs 2,237 crore by the promoters. This investment will be made through preferential warrants. The company informed the stock exchange that 60% of the shareholders voted in favour of the proposal. This decision is a big relief for promoters Subhash Chandra and Punit Goenka. In December 2024, the shareholders rejected Goenka's appointment as director due to governance reasons.

This time, there was huge support from retail investors, in which 80% retail investors voted in favor of the proposal, while 20% opposed it. Retail investors hold more than 40% stake in the company.

Institutional investors' attitude
The institutional investors' attitude remained lukewarm. 52% institutions voted against the proposal and 48% voted in favor. Domestic proxy advisory firms had asked shareholders to vote against the proposal, but foreign proxy firms did not do so.

Company's statement The company told the stock exchange, "The board and management noted that 60% of the shareholders supported the proposal to issue warrants to the promoter group. We are grateful for their support. We also respect the decision of the rest of the shareholders." The company said that it is rapidly moving towards its goals with its cash, cautious strategy and entrepreneurial spirit.

Subhash Chandra's clarification On July 3, Subhash Chandra explained the company's strategy in a 90-minute call with investors. He said, "We are not taking any loan nor pledging shares. This money is our own, which has come as recovery from the units associated with the promoter." He said that the promoter group has limited cash right now, but the rest of the money is expected to be received soon.