Zee Entertainment Enterprises Limited has approved a promoter group fund infusion of 2237 point 4 crore rupees through the issuance of up to 16 point 95 crore fully convertible warrants priced at 132 rupees each. The development was announced through a stock exchange filing.

This preferential allotment, which is subject to shareholder approval, will increase the promoter group stake in the company to 18 point 39 percent. The warrant price is above the SEBI mandated floor price of 128 point 58 rupees, with promoters voluntarily paying a premium of 3 point 42 rupees per unit.

According to the company, the capital infusion will strengthen its financial foundation and support its strategic initiatives in content creation and technological growth.

JP Morgan advised Zee Entertainment on strategic alternatives and reviewed the company’s growth plans before the decision. The fund infusion is expected to improve the company’s balance sheet and enable it to explore value-accretive opportunities in the media and entertainment industry.

Chairman R Gopalan said the move aligns promoter interests with the company’s long-term business goals. Promoter representative Shubham Shree noted that their intention to increase stake was clear even when the company’s share price stood at 106 point 35 rupees.

Before the announcement, Zee Entertainment shares closed at 138 point 25 rupees on the NSE, up by 0 point 68 percent.