Zee Entertainment promoter group entity Sunbright Mauritius Investments Limited has acquired an additional 2,40,59,266 fully convertible warrants. The acquisition was completed on August 27, 2026, increasing the entity's total holding to 19.56% of the company's diluted share capital.

This follows an earlier allotment of 20,94,47,805 warrants completed on August 21, 2026, for a total issue price of ₹659.76 crore. The new acquisition was disclosed under Regulation 29(2) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.

Allotment details

The initial warrants were allotted pursuant to a board resolution passed on July 1, 2026, and a special resolution approved by members on July 31, 2026. The issue price comprises a warrant subscription price of ₹31.50 and a warrant exercise price of ₹94.50.

Updated shareholding position

Sunbright Mauritius Investments Limited now holds a total of 23,35,07,071 warrants. This represents 19.56% of the total diluted share capital of Zee Entertainment Enterprises Limited.

The total diluted share capital stands at ₹119,40,26,491, divided into 119,40,26,491 equity shares of Re. 1 each, assuming full conversion of all outstanding warrants. The existing equity share capital remains unchanged at ₹96,05,19,420.

Conversion terms

Sunbright Mauritius Investments Limited can convert the warrants into equity shares within 18 months from the date of allotment. Upon conversion, each warrant will be adjusted against the issue price of one fully paid-up equity share of face value ₹1 each at ₹126 per share.

If the warrants are not exercised within the 18-month period, they will lapse, and the subscription amount paid will be forfeited. There is no immediate change in the company's paid-up share capital until conversion occurs.

Regulatory context

The Securities Appellate Tribunal had previously granted two key reliefs to Zee Entertainment. The first allowed the preferential issue of fully convertible warrants to the promoter group. The second permitted access to mutual fund units for dividend distribution purposes.

Reports indicate that SEBI's earlier regulatory stance was not intended to block the fundraising plans for Zee Entertainment, Punit Goenka, and Subhash Chandra.

Zee Entertainment Enterprises Limited has issued a corrigendum to its earlier disclosure regarding the preferential allotment of fully convertible warrants, correcting the post-conversion shareholding percentage of the allottee.

The company informed the listing departments of BSE Limited and National Stock Exchange of India Limited on August 31, 2026, that the shareholding of Sunbright Mauritius Investments Limited (SMIL) post conversion should be read as 2.01% instead of the previously disclosed 1.40%.

Corrigendum Details

This clarification relates to the communication dated August 27, 2026, concerning the allotment of fully convertible warrants on a preferential basis. The correction specifically applies to Annexure A, Point No. 5, which details the shareholding of the proposed allottee on a fully diluted basis.

The company stated that all other details contained in the original disclosure remain unchanged. The disclosure was made under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Previous Context

Earlier on August 31, 2026, Zee Entertainment had submitted a statutory auditor certificate confirming compliance with SEBI regulations for the issuance of warrants to SMIL. The Securities Appellate Tribunal (SAT) had granted a one-day extension on August 27, 2026, to address a procedural delay in crediting subscription funds for 2,40,59,266 warrants.

The total warrant pool stood at 24,94,85,563. The recent issuance completed the pending portion of this pool. The auditors, M/s. Walker Chandiok & Co LLP, confirmed that consideration was received from the allottee’s bank account and records were maintained as of August 28, 2026.