Zee Media Corporation Ltd has sought the Securities and Exchange Board of India approval to raise up to Rs 200 crore through a rights issue.
In a rights issue, the shares are issued to existing investors as per their holding at a pre-determined price and ratio.
The company would issue equity shares for an aggregate amount “aggregating up to Rs 2,000 million on rights basis,” a draft letter filed by the company with SEBI showed.
The funds raised from the issue would be utilised towards purchase of equipment and accessories for production and broadcasting, repayment of certain loans availed by the company, funding subsidiaries for repayment of loans, and other general corporate purposes.
Zee Media Corporation Ltd (ZMCL), formerly known as Zee News Ltd, broadcasts 10 news channels including two national ones — Zee News and Zee Business.
Its regional news channels are Zee 24 Taas, 24 Ghanta, Zee Sangam, Zee Madhya Pradesh Chhattisgarh, Zee Purvaiya, Zee Marudhara, Zee Punjab Haryana Himachal and Zee Kalinga.
Axis Capital Ltd is the lead manager of the issue.
Earlier in October, the company’s board of directors had “approved, in-principle, raising of funds for an amount not exceeding Rs 200 crore through issue of equity shares of the company to its eligible shareholders.”