The Securities and Exchange Board of India (Sebi) has sought clarification from the merchant banker of Zee Media Corp on the firm’s proposed Rs 200-crore rights issue. Without disclosing the details, Sebi has said “clarifications (are) awaited from lead manager” for the proposed rights issue. In a rights issue, shares are issued to existing investors in line with their holding at pre-determined price and ratio.
According to the latest weekly update to the processing status of draft offer documents filed with Sebi, the regulator has said clarifications were awaited on the proposed rights issue of Zee Media as on January 23 this year. Sebi had received last communication from the company on the issue on January 21.
The status is updated on a weekly basis by the regulator and the next update of the status as on January 30, would be uploaded on Sebi website on the next working day. Sebi said that it might issue observations on Zee Media document within 30 days from the date of receipt of satisfactory reply from the lead merchant bankers to the clarification or additional information sought from them.
The regulator had received the draft offer documents on January 2 this year through its lead manager Axis Capital. The company’s proposed rights issue is estimated to raise up to Rs 200 crore. 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. 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.