Zee Media Corporation Declares Q3 Results; Share Price In Focus

On Wednesday, shares of Zee Media Corporation Limited shot up by almost 2.5 per cent, hitting an intraday high of Rs 14.75 from the day's prior close of Rs 14.39. The stock has a 52-week high of Rs 26.35 and a low of Rs 10. Currently, the shares of the company are trading 56.4 per cent above the 52-week low. The company has a market cap of more than Rs 911 crores.

Zee Media's recent fiscal results benefit from 'business as usual' performance and some improvement. The company's net sales for the third quarter of FY25 (Q3FY25) is Rs 159.45 crores with a net loss of Rs 22.42 crores. For 9MFY25, net sales were Rs 466.11 crores with a net loss of Rs 82.66 crores. For the complete FY24, Zee Media earned net sales of Rs 638 crores and a net loss of Rs 98 crores.

The Board of Directors of the company on November 7, 2024, has allotted 13,33,33,333 fully convertible warrants at a price inclusive of both the warrant subscription price and the warrant exercise price of Rs. 15/- per warrant aggregating to Rs. 1,99,99,99,995/- on a preferential basis to three Foreign Portfolio Investors (FPIs) namely, UNICO Global Opportunities Fund Limited, Ebisu Global Opportunities Fund Limited and AL Maha Investment Fund PCC - Onyx Strategy, as per a stock exchange filing.

"The Company has received 25% of the Warrant Issue Price, i.e., Rs. 3.75/- per warrant, aggregating to Rs. 49,99,99,999/- (Rupees Forty Nine Crores Ninety Nine Lakhs Ninety Nine Thousand Nine Hundred and Ninety Nine Only), as the Warrant Subscription Price from the Allottees," Zee Media Corporation said in a stock exchange filing.

"The allotment of these Warrants entitles the Allottees to seek conversion of the Warrants in one or more tranches, within a maximum period of 18 months from the date of allotment of the Warrants viz. November 7, 2024. The conversion will happen upon the payment of the Warrant Exercise Price of Rs. 11.25/- per Warrant (which is 75% of the Warrant Issue Price), and the Allottees will be allotted 1 (one) fully paid-up Equity Share of the Company of face value Re. 1/- each at a price of Rs. 15/- per share (including a premium of Rs. 14/- per share), against each Warrant," Zee Media Corporation further informed stock exchanges.

Zee Media Corporation's net loss widened for the quarter ending in September 2024 to Rs 49.86 crore, compared to Rs 30.70 crore for the quarter ending in September 2023. In comparison to the year-ago quarter, which ended in September 2023, when sales were Rs 151.59 crore, they fell 13.78% to Rs 130.70 crore in the quarter that ended in September 2024.

At their Extra Ordinary General Meeting on October 22, 2024, the company's shareholders approved the raising of funds for an amount of upto Rs. 200 Crores by issuing up to 13,33,33,333 fully convertible warrants, each of which is convertible into one fully paid up equity share with a face value of Rs. 1 each, to particular identified Non-Promoter/Non-Promoter Group entities at a price of Rs. 15/-per warrant, including a premium of Rs. 14/-per warrant on a preferential basis, in accordance with the applicable provisions.