Zee Entertainment Enterprises has allotted over 20.94 crore convertible warrants to a Mauritius-based promoter group entity, a move that could eventually raise the founding family’s shareholding in the company to nearly 18%. The allotment, disclosed to the exchanges, followed months of regulatory clearances and a tribunal order that cleared the way for the deal.
Zee Entertainment allots 20.94 crore convertible warrants at Rs 126 each
According to the company’s filing with the BSE and NSE, the Preferential Issue and Allotment Committee approved the allotment of 20,94,47,805 fully convertible warrants to Sunbright Mauritius Investments, a promoter group entity. Each warrant carries an issue price of Rs 126, split between a subscription price of Rs 31.50 and an exercise price of Rs 94.50, as per the filing.
Zee has so far received only the 25% upfront portion, which works out to Rs 659.76 crore. The remaining 75%, amounting to Rs 94.50 per warrant, will come in when Sunbright exercises its right to convert the warrants into equity shares.
The company noted that since only warrants have been issued at this stage, there is no immediate change to its paid-up share capital. That will happen only when conversion takes place.
Zee Entertainment warrant issue gets shareholder, exchange and tribunal clearances
The transaction traces back to a board resolution passed on July 1, 2026, followed by shareholder approval through a special resolution at an Extraordinary General Meeting on July 31, 2026. Both the NSE and BSE granted in-principle approval for the preferential issue on July 27, 2026.
The filing also refers to an order from the Securities Appellate Tribunal dated August 14, 2026, which appears to have been a necessary step before the allotment could proceed. The committee’s resolution formalising the allotment came a week later, on August 21.
Zee Entertainment warrants can be converted into equity shares within 18 months
Sunbright will have up to 18 months from the date of allotment to convert the warrants into equity shares, in one or more tranches. Each warrant, on payment of the balance exercise price, will convert into one fully paid equity share of face value Re 1, at a price of Rs 126 per share, which includes a premium of Rs 125.
As per the filing, should the entity choose not to exercise the warrants within the 18-month window, the unexercised warrants will lapse and the subscription amount already paid to the company will be forfeited.
Zee’s disclosure states that Sunbright currently holds no shares in the company. If all the warrants are converted, the entity would come to hold 20,94,47,805 shares, translating to a 17.90% stake on a fully diluted basis.
About Zee Entertainment Enterprises
Zee Entertainment Enterprises is one of India’s media and entertainment companies, with a presence spanning television broadcasting, digital streaming and filmed entertainment. The company operates a bouquet of television channels across genres including general entertainment, movies and news, alongside its streaming platform ZEE5.
Zee Entertainment share price performance
Zee Entertainment Enterprises’ share price has been down 1.77% as of early morning on August 24. The company’s share price has been up 0.05% in the past month. However, over the last year, the company’s share price has been down 14.38%.