Zee Media Shares Surge 6.7% After Announcing $46.59 Mn FCCB Debt Issuance Fundraising

The stock price of Zee Media Corporation Limited rose to Rs 12.85 on Tuesday, marking a 6.73% increase from the prior day's close of Rs 12.04. This surge came after the announcement made regarding the company's fundraising initiatives. Zee Media's share price was also registered to set a new high of Rs 26.35 and a low of Rs 10.40 over the past year. Following the announcement regarding Zee Media's fundraising efforts, there was a visible upward trend in share prices.

As part of its strategy to raise funds, the company plans to issue Foreign Currency Convertible Bonds (FCCBs) with an upper limit of USD 46.59 million, as disclosed in a regulatory filing today. These unsecured unlisted FCCBs are slated to pay a 5 percent coupon and are maturing within ten years. The Proposed Investors, UNICO Global Opportunities Fund Limited and Sun India Opportunities investing Fund (VCC sub-fund), will have exclusive rights from private placements for these funds.

The conversion price for the FCCBs has been set at Rs 13.50 for every convertible share of equity, which includes an equity premium of Rs 12.50, based on the pricing methodology set out in the scheme of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme, 1993. Also, the relevant date for this issuance has been fixed as April 08, 2025. In accordance with subsection 5(4)(ca) of the scheme, the upper limit of the conversion price is set to Rs 13.04 for every share of equity.

This comes after the company communicated the scheduled date of the April 8, 2025, meeting of the Board of Directors. The board is expected to approve a comprehensive consideration for several fundraising strategies, which may include the issue of equity shares or convertible bonds along with other attachments like debentures warrants, preference shares or other instruments linked to equity. The company plans to implement a private placement or preferential issue subject to legal and regulatory approval.

Zee Media investors trust the company more than they used to, and the numbers demonstrate this. In December 2024, Foreign Institutional Investors (FIIs) acquired 2.05 crore shares, increasing their possession to 12.06 percent, and Domestic Institutional Investors (DIIs) picked up 2.64 crore shares, boosting their stake to 4.24 percent. With a market capitalization of over Rs 800 crore, the company's stock has risen 31.2 percent from its 52-week low of Rs 10.36.

Zee Media reported net sales of Rs 159.45 crore and a net loss of Rs 22.42 crore in Q3FY25. For the 9MFY25 period, the company's net sales stood at Rs 466.11 crore, alongside a net loss of Rs 82.66 crore. The media house's net sales for FY24 were Rs 638 crore, with a net loss of Rs 98 crore.

Zee Media is one of India's largest news networks, having been established in 1999. The company has 15 television channels that cover global, national, and regional news, and is digitalized through zeenews.com which has over 280 million users across 9 languages. Zee News is a premier Hindi news channel, and Zee Business leads in Hindi business news. Due to the company's high-performing regional channels and strong digital presence, Zee Media is able to strengthen its footprint across India.