Fund infusion: Zee promoters may tap state govt recoveries

PROMOTERS OF ZEE Entertainment may tap into recoveries from creditors as it builds its war chest for the ₹2,237-crore fund infusion into the firm, sector analysts said.

- VIVEAT SUSAN PINTO

On Monday, Zee's promoters said they were raising their stake to 18.39% from nearly 4% in the company as they sought to accelerate the firm's growth plans. The promoters would subscribe to a preferential issue of nearly 170 million fully-convertible warrants at ₹132 apiece, the media company said, as part of the fund infusion plan that was recommended by investment banker JP Morgan.

Zee chairman R Gopalan said the fund infusion would ensure the promoters' long-term commitment and motivation in the company.