The resolution received 59.5% support—well below the required 75% majority—effectively blocking the Goenka family’s plan to increase their holding from 3.99% to 18.39%, the company said in a stock exchange filing on Thursday.
The proposal involved issuing 169.5 million warrants worth Rs 2,237 crore to Altilis Technologies and Sunbright Mauritius Investments, entities affiliated with the Goenka family. The funds were intended to support Zee’s growth strategy in a competitive and evolving media landscape.
“While the efforts being taken have augured well for the company, in order to further safeguard it from a future growth perspective, it is important to keep a sufficient war chest,” Zee said in a statement, citing a rapidly shifting market and fierce industry competition.
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The development comes after Zee scrapped its proposed merger with Sony Group Corp’s India operations and shifted focus to cost-cutting and strengthening core businesses.
Proxy advisory firms InGovern and Institutional Investor Advisory Services had recommended voting against the fundraising proposal, raising concerns about shareholder dilution and the use of warrants as a capital-raising tool.
Public investors currently own 96% of Zee’s shares, including major institutions such as HDFC Mutual Fund, Life Insurance Corporation of India, and Norway’s Government Pension Fund Global. This is not the first time shareholders have pushed back; they previously rejected CEO Punit Goenka’s reappointment to the board in November 2024.
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Zee Entertainment Enterprises share price target
According to Trendlyne, the average target price for Zee Entertainment Enterprises is Rs 147, implying a 4% upside from current levels. Of the 18 analysts tracking the stock, the consensus rating is ‘Buy’.
Zee Entertainment Enterprises stock performance
Zee shares closed 0.14% higher at Rs 141.9 on Thursday, even as the Sensex declined 0.41%. The stock is up 36% over the past three months and 15% year-to-date but has fallen 37% over the last three years. Zee’s market capitalisation currently stands at Rs 13,629 crore.
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