Shares of Zee Entertainment Enterprises Ltd. (ZEEL) experienced a significant decline of nearly 5% in Thursday's trading session, hitting a low of Rs 103.50 on the BSE. The downturn was primarily triggered by the company's denial of a news report concerning a Rs 418 crore Foreign Direct Investment (FDI) approval.
ZEEL explicitly stated that it was unaware of the basis for the news article, which had suggested a foreign investment from OFI Global China Fund LLC. The media firm clarified that there had been no such investment by OFI Global China Fund LLC in the company, directly refuting the report that cited data from the Department for Promotion of Industry and Internal Trade (DPIIT).
Preferential Warrants Issue Approved
Adding to the day's developments, Zee Entertainment also announced that its board has given approval for a substantial preferential issue of fully convertible warrants. This issue, valued at Rs 3,143.50 crore, will be made to Sunbright Mauritius Investments Ltd., an entity belonging to the promoter group.
The board sanctioned the issuance of up to 24,94,85,563 fully convertible warrants at a price of Rs 126 apiece. Each warrant is convertible into one fully paid-up equity share with a face value of Re. 1. The promoter group entity is required to pay an upfront subscription amount of Rs 31.50 per warrant, which represents 25% of the issue price.
The remaining balance of Rs 94.50 per warrant will be payable at the time of conversion. These warrants can be converted into equity shares in one or more tranches within an 18-month period from the date of allotment, pending necessary shareholder and regulatory approvals.
Market Performance Context
Despite today's fall, ZEEL's shares have shown a 15.38% increase in 2026 so far, contrasting with a 15.38% decline observed in the broader BSE Sensex during the same period.