Zee Music, which is currently a business unit, will now be made a subsidiary, according to the sources, who added that the announcement of the carve-out of the Music business is likely to take place at the company’s next board meet.
The date for the board meeting is yet to be announced officially.
Sources added further that Zee Entertainment is looking at a valuation of around ₹6,000 crore for Zee Music and a clutch of strategic and Private Equity (PE) investors could be in the fray for the proposed stake sale.
Zee Entertainment is further aiming to increase its cash balance, which is currently around ₹3,000 crore. The company’s current market capitalization is just over ₹10,000 crore.
CNBC-TV18 has reached out to Zee Entertainment and is yet to receive an official comment on this story.
Earlier this month, the board of Zee Entertainment had approved an issue of warrants to promoters on a preferential basis, to raise up to ₹3,143.5 crore. This will be subject to shareholder approval.
The move came just a year after the special resolution to issue convertible warrants worth ₹2,237 crore to promoters failed to get the required votes from shareholders, as special resolutions need a minimum of 75% votes to be passed.
Shares of Zee Entertainment are now trading 0.9% higher after gaining as much as 3% to make an intraday high of ₹109. The stock is still up 19% so far this year.
First Published: Jul 17, 2026 3:24 PM IST
