Zee Entertainment has announced a strategic investment decision, with its board of directors approving an investment of up to ₹116 crore in Phantom Digital Effects Limited through Compulsorily Convertible Debentures (CCDs) on a preferential allotment basis. The board meeting was held on April 17, 2026, from 3:00 p.m. to 4:30 p.m., marking a significant milestone in the company's expansion strategy within the Animation, Visual Effects, Gaming and Comics (AVGC) segment.

Investment Details

The investment will be made in one or more tranches through cash consideration. The following table summarizes the key investment parameters:

Target Company Profile

Phantom Digital Effects Limited is engaged in post-production activities, including visual effects (VFX) services, animation, digital intermediate, interactives, and allied creative services for the media and entertainment industry. The company was incorporated on February 2, 2016, and has a global presence across India, the United States, Canada, the UK, France, Ireland, Spain, and China. Its paid-up equity share capital stands at ₹15,92,28,000 divided into 1,59,22,800 equity shares of ₹10 each.

Financial Performance

Phantom has demonstrated consistent growth over the past three fiscal years:

Strategic Rationale

The investment represents a strategic partnership rather than merely a financial transaction. The acquisition does not fall under related party transactions, and the promoter, promoter group, or group companies have no interest in Phantom. The partnership aims to leverage Zee Entertainment's content vision, intellectual property ownership, and distribution capabilities with Phantom's robust execution engine, proprietary workflows, and AI-integrated production capabilities.

Strategic Implications

This investment aligns with the broader industry trend of media companies investing in advanced digital technologies and post-production capabilities. Phantom's brand portfolio under Phantom Media Group (PMG) includes Milk Visual Effects, Tippett Studio, PhantomFX, Lola Post, and Spectre Post. Tippett Studio has won two Academy Awards for 'Jurassic Park' and 'Star Wars: Episode VI – Return of the Jedi', while Milk Visual Effects has won an Oscar and BAFTA for 'Ex Machina'.

The partnership is non-exclusive and collaborative in nature, enabling PhantomFX to maintain management continuity and serve its global client base while expanding its capabilities. The investment is subject to the approval of PhantomFX's shareholders, and no governmental or regulatory approvals are required for the transaction.

Source: None/Company/INE256A01028/412b583f-c5d3-45f8-a949-12be99333ba6.pdf

Zee entertainment has submitted its quarterly compliance certificate under Regulation 74(5) of the Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018 for the quarter ended March 31, 2026. The submission was made to both BSE Limited and National Stock Exchange of India Limited on April 10, 2026.

Regulatory Compliance Certificate

The certificate was issued by MUFG Intime India Private Limited (formerly Link Intime India Private Limited), which serves as the Registrar and Share Transfer Agent for Zee Entertainment Enterprises Limited. The document confirms compliance with SEBI's depositories regulations for the fourth quarter of fiscal year 2026.

Certificate Confirmation Details

MUFG Intime India Private Limited confirmed that all securities received from depository participants for dematerialisation during the quarter ended March 31, 2026 were properly processed. The registrar verified that:

• Securities received for dematerialisation were confirmed or rejected to depositories within prescribed timelines
• Security certificates comprised in the dematerialisation process have been listed on stock exchanges where earlier issued securities are listed
• Security certificates received were mutilated and cancelled after due verification by depository participants
• Names of depositories have been substituted in the register of members as registered owners

Document Authentication

The submission was digitally signed by Ashish Agarwal, Company Secretary (FCS6669) of Zee Entertainment Enterprises Limited. The certificate from MUFG Intime India Private Limited was signed by Ashok Shetty, Sr. Vice President-Corporate Registry.

Stock Exchange Communication

The certificate was submitted to both major Indian stock exchanges where Zee Entertainment shares are listed. The company communicated with BSE Limited (Scrip Code: 505537) and National Stock Exchange of India Limited (Symbol: ZEEL EQ) to ensure compliance transparency across all trading platforms.