Zee Entertainment Enterprises has won interim relief from India’s Securities Appellate Tribunal (SAT). The ruling allows the media company to proceed with its $330 million capital raise despite an ongoing market ban from the country’s securities regulator.
The tribunal said Zee can move ahead with the promoter fund infusion. However, the company must first deposit the penalty imposed by the Securities and Exchange Board of India (SEBI).
SAT reserved its decision on Zee’s wider request to suspend the market restrictions. The ban, therefore, remains in place for now.
Zee shares rose more than 5% after the tribunal’s decision.
Shareholders Approve $330 Million Fund Raise
Zee shareholders approved the INR31.435 billion ($330 million) promoter fund infusion at an extraordinary general meeting on July 31.
The deal covers 249,485,563 warrants issued to a promoter group entity. Each warrant costs INR126 ($1.32).
The promoters’ stake could rise to 23.79% once they convert the warrants into shares.
Shareholders also approved the “Truly Yours” employee stock option plan. The scheme covers 37,422,835 stock options for eligible employees of Zee and its subsidiaries.
R. Gopalan, chair of Zee Entertainment, thanked shareholders for their support.
“This approval is a clear reflection of the shareholders’ belief in the Company and its management,” Gopalan said.
He added, “The board firmly believes that robust growth capital coupled with enhanced promoter alignment will serve as key enablers in ensuring long-term profitability in a dynamic business environment.”
SEBI Imposes Market Ban
SEBI issued its order a day after the shareholder vote. The regulator barred Zee from the securities market for two months.
It also barred chair emeritus Subhash Chandra and managing director and CEO Punit Goenka from the market for 12 months.
SEBI imposed penalties totalling INR14.8 million ($155,000). The penalties include INR3 million against Zee, INR5.8 million against Goenka and INR6 million against Chandra.
The case involves a Zee-owned property in Hyderabad. In December 2018, the property secured INR7.26 billion ($76.1 million) in loans for four entities linked to the Essel Group.
SEBI said Zee’s board and audit committee did not approve or receive disclosure of the pledge.
Zee Plans Expansion
Zee said it is reviewing the SEBI order with its legal advisers. The company also said it does not expect the order to stop its fundraising plans.
“The company would like to clarify that pursuant to the regulatory approvals received from the stock exchanges and from its esteemed shareholders at the Extraordinary General Meeting conducted on 31st July 2026, it will further take all required steps to complete the fund-raising exercise, which is aimed at strengthening its financial foundation, and will also continue to work towards creating value for its stakeholders,” a company spokesperson said.
Zee plans to use the new capital for sports, acquisitions, digital content, artificial intelligence and microdrama through fiscal 2029.
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