Zee Entertainment will receive ₹2,639 crore at ₹126 apiece, upon full conversion.
Post conversion of warrants, the promoter’s shareholding on a fully-diluted basis will be at 17.9% compared to shareholder approval for 23.79% stake.
Shareholders of Zee Entertainment had approved the issue of 24.94 crore warrants worth ₹3,143.52 crore to the promoter group at ₹126 per warrant.
The resolution had passed with 76.6% of total votes polled in its favour.
However, within a few hours, market regulator SEBI barred Zee Entertainment for two months and its promoters Subhash Chandra and Punit Goenka from accessing the securities market for a 12-month period each.
The order was regarding Zee’s Hyderabad property being utilized to secure borrowings worth ₹726 crore for four Essel Group entities.
SEBI also said the board and audit committee approvals had not been obtained for the same along with the PFUTP and LODR violations.
On August 14, the Securities Appellate Tribunal (SAT) granted interim relief to Zee Entertainment in its case against SEBI. It stayed the SEBI order against the company and allowed it to proceed with the proposed ₹3,143 crore preferential warrant issue to promoters.
Shares of Zee Entertainment Enterprises were trading 0.9% lower at ₹106.63 apiece. The stock has gained 17.9% this year, so far.
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