Zee Entertainment Enterprises ('Z') held two board meetings on Sunday to review and advance its strategic plans. 

Central to the day’s discussions was a proposal to strengthen the company’s financial base and support its long-term ambitions in the content and technology space.

In the first meeting, representatives from investment bank J.P. Morgan India presented an evaluation of Zee’s business roadmap. They explored strategic alternatives, including market perceptions of the company and its stock. J.P. Morgan was brought in earlier this year to assess the company’s forward-looking plans and advise on potential actions.

Later in the day, the Board convened a second meeting where it formally approved the issuance of up to 16.95 crore fully convertible warrants to promoter group entities on a preferential basis. 

The warrants are priced at INR 132 each which is higher than the SEBI-regulated minimum of INR 128.58. 

The promoters have agreed to invest INR 2,237.4 crore through this route, which would raise their shareholding in the company to 18.39%. The preferential issue is subject to shareholder approval.

The company said the capital infusion is aimed at reinforcing its balance sheet and preparing for future investments, especially in emerging areas across media and entertainment. ZEE also said the funds would be used to strengthen core business segments and explore new growth avenues.

The board-level decisions follow a series of moves aimed at diversifying operations and setting up new ventures. On 1 May 2025, Zee’s board approved the incorporation of three wholly owned subsidiaries to expand its business footprint. A week later, the company released a detailed investor presentation outlining its revised growth strategy and appointed J.P. Morgan to evaluate the proposed initiatives.

Among the new initiatives already in motion is Zee’s strategic investment in Bullet, a start-up focused on micro-drama content aimed at younger audiences. The move signals the company’s interest in blending content innovation with digital tech, a direction it describes as central to its transformation efforts.

Zee has indicated that it will continue exploring opportunities at the intersection of content and technology, positioning itself for long-term relevance in a rapidly evolving entertainment landscape.

R. Gopalan, chairman, Zee Entertainment Enterprises, said, “The Board has deliberated upon the various alternatives discussed with J.P. Morgan and has conducted a thorough evaluation of the Company’s growth plans. The Board believes that the steps being implemented to enhance the promoter shareholding will ensure their added motivation to work in line with the enhanced business plan. The Media & Entertainment sector is evolving rapidly leading to a change in consumer preferences across the realm of entertainment. The investment by the promoters, coupled with the strong, ambitious growth initiatives planned by the management team, will ensure that ‘Z’ remains well-positioned to accelerate its strategic plans to achieve its targeted aspirations.”

Shubham Shree, head - finance, strategy and legal, Essel Group, added, “The promoters submitted their desire to enhance their shareholding to the Board on 1 May 2025 when the stock price was at INR 106.35, however, they are committed to the Company and its business even at this higher price.”