Zee Media Corporation In Focus As Subsidiary Makes Acquisition of Rs. 3,75,22,391

Zee Media Corporation Ltd.'s shares were the topic of attention on Friday following a 34.52% year-to-date surge and a 58.98% one-year jump. The reason the stock is in the spotlight is that on Thursday, Zee Akaash News Private Limited, the company's wholly-owned subsidiary, entered into an agreement dated October 10, 2024, to invest an aggregate of Rs. 3,75,22,391/- in Flutrr Digimate Private Limited, following the necessary approvals. Zee Akaash News Private Limited will make the aforementioned investment by acquiring convertible warrants and equity shares of Flutrr.

The acquisition/investment will be conducted in accordance with the definitive agreement(s) and will involve the subscription of 1 equity Share at Rs. 22,391/- and 5 convertible warrants for a total consideration of Rs. 3,75,00,000/- as per Zee Media Corporation.

As a result, Zee Akaash News Private Limited will acquire 1 equity share at Rs. 22,391/- and 5 convertible warrants for a total consideration of Rs. 3,75,00,000/-. These warrants are convertible into equity shares of the company in terms of the definitive agreement(s), as per a regulatory filing.

"Flutrr," which was incorporated on May 4, 2021, is a company that develops and oversees a mobile application and social media website in the vernacular. Information technology solutions and technology-enabled services are Fluttr's areas of expertise.

Meanwhile, the Board of Directors of the Zee Media Corporation have approved convening of the Extra-Ordinary General Meeting ('EGM') of the equity shareholders of the company on Tuesday, October 22, 2024. "The Company shall be providing facility to all its shareholders to exercise their right to vote on the business proposed at the EGM by electronic means, by using remote e-voting facility and e-voting facility at EGM. The said facility is being provided by National Securities Depositories Ltd (NSDL). The remote evoting period shall commence from Saturday, October 19, 2024, at 9:00 A.M. (IST) and will end on Monday, October 21, 2024, at 5:00 P.M. (IST), and the shareholders of the Company holding shares as at the cut-off date i.e. Tuesday, October 15, 2024, shall be eligible to vote using the remote e-voting facility and e-voting facility at EGM," said Zee Media Corporation in a regulatory filing.

In order to raise Rs 200 crore, Zee Media Corporation Limited stated on September 27, 2024, that its board has approved the issuing of up to 13.33 crore warrants on a preferential basis. After being allocated, the Rs 15 warrants are convertible into an equivalent number of equity shares after 18 months. Three foreign portfolio investors-UNICO Global Opportunities Fund Limited, AL Maha Investment Fund PCC - Onyx Strategy, and Ebisu Global Opportunities Fund Limited-will get these warrants from this company. Upon full execution of the warrants, these non-promoter companies will jointly own about 15% stake in Zee Media's stock following the conversion.

On Friday, the shares of Zee Media Corporation were trading at Rs 21.87 apiece with a market cap of Rs 1,367.81 Cr.