Indian tribunal allows Zee Entertainment to proceed with warrants issue; shares rise
- The Securities Appellate Tribunal allows Zee to issue fully convertible warrants to a promoter group entity on a preferential basis
BENGALURU: An Indian appeals tribunal granted Zee Entertainment partial relief from a securities market ban on Friday, allowing the television broadcaster to proceed with a fundraise through an issue of warrants.
The Securities Appellate Tribunal, which hears appeals against orders passed by the Securities and Exchange Board of India, allowed Zee to issue fully convertible warrants to a promoter group entity on a preferential basis, an order showed.
Shares of Zee ended 5.7% higher on Friday.
In July, SEBI barred Zee from the securities markets for two months, and CEO Punit Goenka and Founder-Chairman Emeritus Subhash Chandra for a year.
Last month, Zee approved the issue of convertible warrants worth 31.44 billion rupees ($329.5 million).
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The tribunal said the company’s debarment from the securities markets would continue apart from the limited permission to complete the warrant issue.
The tribunal also extended by a week the deadline for the warrant issue, which was due to expire on August 14.