1 week ago
Zee Entertainment Allots Warrants, Promoter Stake Could Reach 17.90%
Zee Entertainment has given a company linked to its promoters special rights to buy shares later.
These rights are called convertible warrants.
Sunbright Mauritius Investments received more than 20.94 crore warrants at Rs 126 each.
Sunbright has already paid 25% of the total amount, or Rs 659.76 crore.
It must pay the rest if it chooses to turn the warrants into shares.
The conversion can happen within 18 months, in one or more parts.
If all the warrants are converted, Sunbright could own 17.90% of Zee.
If it does not convert them in time, the warrants will expire and the upfront money will be forfeited.
Zee Entertainment allotted 20,94,47,805 convertible warrants to promoter entity Sunbright Mauritius Investments.
The warrants were issued at Rs 126 each, with 25% paid upfront and 75% due on conversion.
Zee received Rs 659.76 crore upfront, while the remaining amount could total Rs 1,979.28 crore.
Sunbright has up to 18 months to convert the warrants into equity shares.
If fully converted, the warrants could give Sunbright a 17.90% stake in Zee on a fully diluted basis.
- Who
- Zee Entertainment Enterprises allotted the warrants to Sunbright Mauritius Investments, a promoter group entity.
- What
- The company allotted 20,94,47,805 fully convertible warrants at Rs 126 each.
- Where
- The allotment was disclosed through filings with the BSE and NSE, and Sunbright is based in Mauritius.
- When
- The allotment was formalised on August 21, 2026; Sunbright has 18 months from that date to convert the warrants.
- Why
- The allotment enables Sunbright to acquire equity shares if it pays the remaining exercise price and exercises the warrants.
Key facts
- Allottee
- Sunbright Mauritius Investments, a promoter group entity
- Number of warrants
- 20,94,47,805
- Issue price
- Rs 126 per warrant
- Upfront payment
- 25%, amounting to Rs 659.76 crore
- Balance payment
- Rs 94.50 per warrant, payable upon conversion
- Conversion period
- Up to 18 months from the allotment date
- Potential stake
- 17.90% on a fully diluted basis if all warrants are converted
Sources
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