Zee Entertainment Enterprises Ltd board has approved the preferential allotment of fully convertible warrants to Sunbright Mauritius Investments to raise ₹3,143.51 crore. The decision, taken on July 1, 2026, involves issuing up to 24,94,85,563 warrants at a price of ₹126 each, convertible into equity shares of face value ₹1 each. The promoter group entity will pay 25% of the issue price upfront, with the balance due upon conversion within 18 months. The board also approved the introduction of ESOP 2026, subject to shareholder consent.

Warrant Issue Details

The preferential issue will be made on a private placement basis to Sunbright Mauritius Investments Limited. Each warrant is convertible into one fully paid-up equity share with a face value of Re. 1, and the total issue size includes a premium of ₹125 per share. Upon allotment, the warrants will constitute up to 20% of the company's share capital on a fully diluted basis. The following table summarises the key terms of the preferential issue:

The pricing represents a premium of 11.86% to the price determined under SEBI ICDR Regulations, 2018, and a 16.33% premium to the closing market price on NSE as on July 1, 2026. If the warrants are not exercised within the stipulated 18-month period, they will lapse, and the upfront subscription amount will be forfeited.

ESOP 2026 Approval

The board approved the implementation of ESOP 2026 based on the recommendations of the Nomination & Remuneration Committee. The plan allows for the grant of up to 3,74,22,835 options, convertible into equity shares of face value ₹1 each. The exercise price per option is fixed at ₹126. The scheme is compliant with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021.

Shareholder Meeting

Zee Entertainment will convene a shareholders' meeting to seek approval for the issuance of warrants and the implementation of ESOP 2026. The meeting will be held in compliance with the Companies Act, 2013, and relevant MCA circulars. The company will disclose the significant terms of the ESOP and further details regarding the preferential issue prior to the shareholder vote.

Zee Entertainment has issued a formal clarification denying any investment from OFI Global China Fund LLC, while also stating that it is unaware of the basis on which the Economic Times published its report on the matter.

Company Clarification on Media Report

Zee Entertainment stated that it has no knowledge of the grounds or basis for the article carried by the Economic Times. The company has explicitly denied that OFI Global China Fund LLC holds any investment in the company. This clarification appears to be a direct response to information that was reported in the media and attributed to the company or its shareholding structure.

Key Details of the Denial

The following table summarises the key aspects of Zee Entertainment's clarification:

Zee Entertainment's statement serves as a categorical rebuttal to the reported investment claim. The company has not provided additional details regarding the nature of the Economic Times article or the specific context in which OFI Global China Fund LLC was mentioned. The denial underscores the company's intent to ensure accurate information is available to investors and stakeholders regarding its shareholding and investor base.