Zee Seeks SAT Extension for Rs 75 Cr Warrant Subscription
By Business Desk
Zee Entertainment Enterprises requests a one-day SAT extension for a crucial warrant subscription after a Rs 75 crore payment delay impacted promoter stake.
Zee Entertainment Enterprises (ZEEL) has approached the Securities Appellate Tribunal (SAT) for a one-day extension to finalize a warrant subscription by its promoter entity, Sunbright Mauritius Investments. This request follows a delay where approximately Rs 75 crore of the subscription amount was credited past the August 21 deadline.
The Securities Appellate Tribunal had previously granted Zee a one-week period to complete the warrant subscription. Following this, Zee allotted 21 crore warrants to Sunbright Mauritius Investments, a key promoter group entity, at a price of Rs 126 per warrant.
Key Subscription Figures
- Subscription amount delayed: Rs 75 crore
- Original deadline for credit: August 21
- Warrants allotted: 21 crore to Sunbright Mauritius Investments
- Allotment price: Rs 126 per warrant
- Initial payment at allotment: Approximately Rs 660 crore (25% of total)
- Remaining payment upon conversion: Rs 94.5 per warrant
These warrants are convertible into equity shares over an 18-month timeframe. The remaining Rs 94.5 per warrant becomes due upon conversion, which would elevate Sunbright’s ownership in Zee to approximately 18% upon full conversion.
Promoter Stake Implications
Should the additional Rs 75 crore infusion be approved, it would enable Sunbright to convert an extra two percentage points. This would potentially increase the combined stake of the promoters from their current 4% to a total of 24%.
The Securities Appellate Tribunal is expected to deliver its crucial decision regarding Zee’s extension request on Thursday.