Zee Shareholders Approve $330 Million Capital Raise Before Indian Regulator Bars Company From Markets
Shareholders of Indian media giant Zee Entertainment Enterprises Ltd. approved a promoter group fund infusion worth INR3143.5 crore ($330 million) and a...
Key points
- Shareholders of Indian media giant Zee Entertainment Enterprises Ltd.
- approved a promoter group fund infusion worth INR3143.5 crore ($330 million) and a new employee stock option plan at an extraordinary general meeting, a day before India’s securities regulator barred the company and two of its top executives from the market.
- Gopalan, chair of Zee Entertainment Enterprises Ltd., thanked shareholders for their support.
- SEBI found the pledge was never disclosed to or approved by Zee’s board or audit committee, and determined that Chandra and Goenka had used the company’s asset to shield borrowings tied to their own family-controlled entities.
What happened
Shareholders of Indian media giant Zee Entertainment Enterprises Ltd. approved a promoter group fund infusion worth INR3143.5 crore ($330 million) and a new employee stock option plan at an extraordinary general meeting, a day before India’s securities regulator barred the company and two of its top executives from the market. Gopalan, chair of Zee Entertainment Enterprises Ltd., thanked shareholders for their support. SEBI found the pledge was never disclosed to or approved by Zee’s board or audit committee, and determined that Chandra and Goenka had used the company’s asset to shield borrowings tied to their own family-controlled entities. A company spokesperson said Zee was reviewing the order with legal counsel and did not expect it to affect the fund-raising exercise. The order is the latest in a long-running SEBI probe into Zee’s promoters.