Zee Entertainment share price rises 3% on board nod to ₹2,237 crore fund infusion by promoters; MOSL raises target

Zee Entertainment share price jumped over 3 per cent in Tuesday's trading session after the company's board approved capital infusion from promoter entities.

Zee Entertainment share price opened at ₹141.47 apiece on June 17, as compared to previous close of ₹137.91. The stock further climbed to ₹141.22 during the intraday session.

Details on Zee Entertainment's capital infusion

The board approved approved a capital infusion of ₹2,237.44 crore from promoter entities via a preferential allotment of convertible warrants.

Each warrant is being issued at ₹132, reflecting a 4.5 per cent discount compared to Monday’s closing stock price. These warrants will be allotted to two entities within the promoter group—Altilis Technologies Private Limited and Sunbright Mauritius Investments Limited.

Following this preferential allotment, the promoter group’s ownership will rise from 4.28 per cent to 18.39 per cent.

R. Gopalan, Chairman of ZEE, said, “The Board has deliberated upon the various alternatives discussed with J.P. Morgan and has conducted a thorough evaluation of the company’s growth plans. The Board believes that the steps being implemented to enhance the promoter shareholding will ensure their added motivation to work in line with the enhanced business plan."

Back in July 2024, the board had also approved a ₹2,000 crore fundraising initiative through foreign currency convertible bonds (FCCBs), to be issued in 10 tranches. However, as of March 31, 2025, only the first tranche had been used, amounting to ₹200 crore.

Zee Entertainment share price - Should you buy or sell?

Brokerage firm Motilal Oswal remains ‘neutral’ on Zee Entertainment stock with a revised target price of ₹150.

“ We remain Neutral on Zee with revised TP to INR150 (earlier INR125), premised on 14x FY27E PE (vs. 12x earlier) as we await sustained revival in ad revenue and favorable outcome in ICC rights arbitration with Star,” the brokerage firm said.

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