Shareholders of Indian media giant Zee Entertainment Enterprises Ltd. approved a promoter group fund infusion worth INR3143.5 crore ($330 million) and a new employee stock option plan at an extraordinary general meeting, a day before India’s securities regulator barred the company and two of its top executives from the market.
The Mumbai-headquartered media and technology company said its shareholders backed a preferential issue of 249,485,563 warrants to a promoter group entity, priced at INR126 ($1.32) each. A warrant gives its holder the right to convert it into a company share at a later date, at a price fixed now. Once exercised, the promoters’ stake will grow to 23.79% of the company.
Shareholders also cleared the “Truly Yours” employee stock option plan, under which 37,422,835 stock options with a face value of INR1 ($0.01) each will be granted to eligible employees of Zee and its subsidiaries, in one or more tranches.
R. Gopalan, chair of Zee Entertainment Enterprises Ltd., thanked shareholders for their support. “This approval is a clear reflection of the shareholders’ belief in the Company and its management,” Gopalan said. “The board firmly believes that robust growth capital coupled with enhanced promoter alignment, will serve as key enablers in ensuring long-term profitability in a dynamic business environment.”
