Acacia Partners group disclosed a 5.51% stake in Zee Media Corporation Limited following an equity capital change due to warrant conversion on June 30, 2026. The group, acting through Acacia Banyan Partners and other entities, holds 36,080,600 shares. This disclosure was made to the stock exchanges under the Substantial Acquisition of Shares and Takeovers Regulations, 2011.

The filing was submitted by Citibank N.A. on behalf of the acquirer group. The total paid-up equity capital of Zee Media Corporation Limited increased to 655,428,680 shares after the transaction. The acquirer clarified that it does not belong to the promoter or promoter group of the target company.

Holding Details

The disclosure details the shareholding pattern before and after the equity capital change. The acquirer's holding percentage decreased from 5.77% to 5.51% due to the increase in the total equity share capital of the company. No shares were acquired or sold in the open market; the change was solely due to the conversion of warrants.

Transaction Information

The mode of acquisition was identified as an equity capital change due to warrant conversion. The transaction occurred on June 30, 2026. The equity share capital of Zee Media Corporation Limited before the acquisition was 625,428,680 shares, which increased to 655,428,680 shares after the event. The total diluted share capital post-transaction stands at 655,428,680 shares.

[Zee Media Corporation Limited](zee media corporation) has allotted 14,00,00,000 fully convertible warrants to Foreign Portfolio Investors (FPIs) on a preferential basis, aggregating to ₹119 crore. The warrants were issued at a price of ₹8.50 per warrant, comprising an upfront payment of ₹2.125 and a balance of ₹6.375 payable upon conversion. The allotment was approved by the Board on June 25, 2026, following shareholder consent and in-principle approval from the National Stock Exchange of India Limited and BSE Limited.

The company received 25% of the warrant issue price, totaling ₹29.75 crore, as the warrant subscription price. The funds were received from three FPIs categorized as Non-Promoter or Non-Promoter Group entities. The allotment does not alter the paid-up share capital immediately, as warrants are convertible into equity shares only upon exercise of the rights attached to them.

Allotment Details

The warrants were allocated to three specific FPIs. The subscription price received against the allotment is detailed below:

Conversion and Shareholding Impact

The warrants are convertible into fully paid-up equity shares of face value ₹1 each within 18 months from the date of allotment, i.e., by December 25, 2027. Upon conversion, the warrant holders will pay the remaining 75% of the issue price. If the warrants are not exercised within this period, they will lapse, and the initial subscription amount will be forfeited.

Post-conversion, the shareholding of the allottees will increase significantly. Sun India Opportunities Investing Fund Incorporated VCC Sub-Fund, which currently holds no shares, will hold 5.55% of the fully diluted equity share capital. Magnifica Global Opportunities VCC-MGO High Conviction Fund Incorporated VCC Sub-Fund will see its holding rise to 5.04%, while Minerva Ventures Fund will hold 5.16%.