MUMBAI: In its first major fundraising effort since the collapse of its merger with Sony Pictures India, Zee Entertainment Enterprises will raise Rs 2,237 crore from its promoters to finance its growth plans. The company plans to issue up to 16.95 crore convertible warrants at Rs 132 each to Altilis Technologies and Sunbright Mauritius Investments, companies owned by promoters Subhash Chandra and his family, in one or more tranches. Once the warrants are converted into equity within 18 months from the date of allotment, Subhash Chandra and his family’s ownership in the broadcaster will increase significantly to 18.39% from 3.99% as of March-end 2025. This will be an important event in Zee’s history as the founding family strengthens its control over the company, which has faced takeover threats in the past. The method by which the family is raising Rs 2,237 crore has not been disclosed. Zee’s fund-raising initiative comes at a time when it is working to stabilise operations and focus on digital growth after implementing various strategies such as cost-cutting, staff reductions, and investment in new content following the fallout from last year’s failed merger with Sony Pictures India. Zee is now looking to build its core business and invest in emerging segments like micro-drama app Bullet. The company has scheduled a shareholder meeting on July 10 to seek approval for the issuance of warrants to its promoters. The warrants are priced higher than the regulatory price of Rs 128.58 each, with the current Zee stock trading at Rs 138 per share. This fundraising plan follows a review of Zee’s growth strategies by investment bank JP Morgan, which presented various strategic alternatives to augment and strengthen the company’s balance sheet. After considering these alternatives, Zee’s board approved the issuance of upto 16.95 crore convertible warrants to promoter group entities on a preferential basis at Rs 132 per warrant. Shubham Shree, representing the promoter group, said: “The promoters submitted their desire to enhance their shareholding to the board on May 1 when the stock price was at Rs 106.35. However, they remain committed to the company and its business even at the higher price (of Rs 132 per warrant).”