Zee Media Plans Nearly Rs 400-Crore Fund Raise Via FCCBs

Zee Media Corp. on Tuesday said that it will raise $46.59 million (about Rs 399.78 crore) via Foreign Currency Convertible Bonds.

The company's board of directors had at its meeting held the same day considered and approved raising the funds via the issuance of 5% coupon, unsecured, unlisted FCCBs up to $46.59 million, according to the exchange filing.

The filing added that the 'Relevant Date’ for the purpose of issuance of the FCCBs is April 8, 2025.

The company has set the ‘floor price’ of the FCCBs at Rs 13.04 per equity share. This is based on the pricing formula as prescribed under Clause 5(4)(ca) of the FCCB Scheme.

The regulatory disclosure added that the bonds, with a 10-year maturity period, will be issued on a private placement basis to proposed investors UNICO Global Opportunities Fund Ltd. and Sun India Opportunities Investing Fund, which is an "incorporated VCC sub-fund".

The FCCBs will be split into five series and the proceeds will be drawn in tranches, it stated. They will not be listed on any of the stock exchanges, whether in India or abroad.

The filing added that the terms and conditions between the company and the proposed investors will be according to the applicable ECB guidelines set forth by the Reserve Bank of India.

The FCCBs are in the nature of being optionally convertible bonds. While not mandatory to be converted, it gives the bondholder or the investor the option to convert them into shares of Zee Media Corp.

The company has fixed the conversion price at Rs 13.50 per equity share and it includes an equity premium of Rs 12.50. The conversion price is based on the pricing formula as prescribed under the Issue of Foreign Currency Convertible Bonds and Ordinary Shares (Through Depository Receipt Mechanism) Scheme 1993.

Shares of Zee Media Corp. closed 6.88% higher at Rs 12.90 apiece on the BSE, compared to a 1.49% advance in the benchmark Sensex.