Zee Media Stock Jumps 10%, Hits ₹20.75 As Board Clears ₹200 Crore Fund-Raising Through 13.3 Crore Convertible Warrants

The shares of Zee Media Corporation on Friday (September 27) has seen a sharp surge, hitting a 10 per cent upper circuit, with shares locked at Rs 20.70.

This sudden rally in the stock prices of the company came after the company's announcement that its board has approved a fund-raising plan of up to Rs 200 crore through the issuance of convertible warrants.

The shares of the company today opened at Rs 20.40 apiece on NSE and ended the week at Rs 20.75, up by 9.96 per cent.

The stock has outpaced the market performance of the Nifty, which has risen 18 per cent year-to-date. Zee Media, in comparison, has seen its shares climb 63 per cent over the last year.

Fund-Raising via Warrants

The company through an exchange filing announced that it is planning to raise Rs 200 crore by issuing 13.3 crore warrants, each priced at Rs 15.

These warrants, upon conversion, will turn into fully paid equity shares. The issuance will be directed toward non-promoter entities, aligning with the market regulator Securities and Exchange Board of India (SEBI) regulations.

According to the company's filing, each warrant holder will be able to convert the warrants into equity shares with a face value of Rs 1.

A key aspect of the process is that only 25 per cent of the issue price (Rs 3.75 per warrant) will be payable at the time of subscription and allotment, meanwhile the remaining 75 per cent (Rs 11.25) is due upon conversion of the warrants, which must occur within 18 months.

As per the regulatory filing, the company also added that the issuance of these warrants will only proceed after necessary approvals from the company's members and regulatory bodies.

Furthermore, the company informed that its trading window will remain closed until 48 hours after the declaration of its unaudited financial results for the quarter ending September 30, 2024.