Zee seeks regulatory consent for US$31.5MN rights issue

DetailsRebecca Hawkes | 06 January 2015

Zee Media Corporation is seeking approval from the Securities and Exchange Board of India (Sebi) to raise over INR2 billion (US$31.5 million) in a rights issue.

Equity shares will be issued to existing investors for an amount "aggregating up to Rs2,000 million on rights basis," according to a draft letter filed with India's capital market regulator.

The funds raised would go towards the purchase of equipment and accessories for production and broadcasting, repayment of loans, funding subsidiaries to repay loans, and other corporate purposes.

Zee Media, formerly known as Zee News, broadcasts two national news channels ones Zee News and Zee Business and eight regional ones: Zee 24 Taas, 24 Ghanta, Zee Sangam, Zee Madhya Pradesh Chhattisgarh, Zee Purvaiya, Zee Marudhara, Zee Punjab Haryana Himachal and Zee Kalinga.

Axis Capital will manage the rights issue, which received board approval in October 2014.