Zee Promoters Stake Hike Rests on LIC, MFs

Domestic institutions, including mutual funds and Life Insurance Corp. of India (LIC), hold the key to allowing Subhash Chandra-led promoter entities to increase their stake in Zee Entertainment Enterprises Ltd.

- Nehal Chaliawala

Domestic institutions, including mutual funds and Life Insurance Corp. of India (LIC), hold the key to allowing Subhash Chandra-led promoter entities to increase their stake in Zee Entertainment Enterprises Ltd. That's when Norges Bank, the company's largest overseas investor, has given its assent. LIC (4.49%), HDFC Mutual Fund (3.66%), and ICICI Prudential Mutual Fund (3.04%) together own over a tenth of the outstanding shares of Zee as of 31 March, making their decision crucial. HDFC Life Insurance (1.57%) is another significant shareholder.

Zee has intensified its outreach to canvass for support and convey the company's view on the warrants issue that will allow promoter entities to raise stake, said an industry executive in the know.

The company seeks to issue warrants to two promoter entities: Sunbright Mauritius Investments Ltd and Altilis Technologies Pvt. Ltd. Upon conversion of the warrants to equity, the aggregate promoter stake in Zee will increase to 18.39% from the existing 3.99%.