- Zee Entertainment approved a share buyback worth up to Rs 600 crore
- The buyback price is Rs 91 per share, a 23.8% premium over closing price
- Up to 6.6 crore equity shares will be repurchased in the buyback offer
Zee Entertainment Enterprises Ltd. has approved a share buyback worth up to Rs 600 crore, offering shareholders an opportunity to tender their shares at a price that is nearly 24% higher than Thursday's closing price on the National Stock Exchange (NSE).
The company's board has cleared a proposal to buy back up to 6.59 crore fully paid-up equity shares through the tender offer route. The buyback price of Rs 91 represents a 23.8% premium over Zee Entertainment's closing price of Rs 73.50 on the National Stock Exchange on November 12. The stock ended Thursday's session up 3.73%.
The proposed buyback represents up to 6.86% of the company's existing paid-up equity share capital. The board has fixed November 25, 2026, as the record date to determine shareholders eligible to participate in the offer.
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In its exchange filing, Zee Entertainment said the buyback would be undertaken on a proportionate basis, in line with the Securities and Exchange Board of India's regulations. The company will reserve 15% of the shares proposed to be bought back, or the number of shares eligible for small shareholders, whichever is higher, for this category of investors.
The promoters and members of the promoter group have indicated that they will not participate in the proposed buyback.
The board's decision follows an assessment of the company's financial position, free cash flows and business outlook. Zee Entertainment said the buyback was considered an appropriate way to enhance shareholder returns and reinforce investor confidence in the company's long-term prospects.
In a statement, Chairman R. Gopalan said the board believes the company's intrinsic value is not adequately reflected in its current market valuation. He added that the buyback reflects confidence in the company's fundamentals and its ability to capitalise on future opportunities.
Chief Executive Officer Punit Goenka said the company has been working to strengthen its capabilities, sharpen its focus across content and digital businesses, and improve operational efficiencies.
The board has also constituted a buyback committee to oversee the process and appointed Emkay Global Financial Services as the merchant banker for the offer. Sangeeta Shetty, the company's chief compliance officer and company secretary, will serve as the compliance officer.
The company said further details, including the offer timeline and participation process, will be disclosed through a public announcement and other documents in accordance with SEBI regulations.
The board and its buyback committee may also revise the buyback price upwards and reduce the number of shares to be repurchased, provided the overall buyback size remains unchanged. Any such revision can be made up to one working day before the record date.
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