Zee Entertainment Enterprises Limited (ZEEL) on June 1 said that the company is considering fundraising on June 6 by way of issuance of equity shares and/or via private placement, a qualified institutions placement, preferential issue, or any other method or combination of methods subject to such approvals as may be required.
"A meeting of the Board of Directors is scheduled to be held on June 6 to consider raising of funds by way of issuance of equity shares and/or any other eligible securities through permissible modes, including but not limited to a private placement, a qualified institutions placement, preferential issue, or any other method or combination of methods," the company said in a filing.
The fundraising proposal comes after Sony scrapped its $10 billion mega merger earlier in January this year with Zee.
Since then, the media company has announced a slew of measures to cut costs and reduce losses in its business, including cutting 15 percent of its workforce. It has announced a remodel of the company's leadership structure.
In the recent fourth quarter, Zee reported a profit of Rs 13.35 crore against a loss a year ago, helped by strong demand for advertising and a fall in expenses.
Domestic advertising revenue for the quarter rose nearly 11% year-on-year (YoY), driven by the continued recovery in the macro advertising environment and spending pickup by FMCG (fast-moving consumer goods) clients.
Meanwhile, shares of Zee on June 1 closed 5.11 percent higher at Rs 156.35 apiece on BSE.
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