Dr Subhash Chandra unveils big Rs 2200 crore investment plan; promoter stake to rise above 18%

Zee Entertainment Enterprises Ltd (Zeel) founder and President Emeritus Dr Subhash Chandra announced that the Zee board has approved the 2.237 Crore supporter investment plan. In a special interview with Zee Business, Zee Business executive editor Anil Singhvi said that the supporter shares will go beyond 18 percent. In particular, Zeel’s organizer group stock was 3.99 percent as of March 31.

Dr Subhash Chandra discussed the company’s future mega plans, and at the same time, the supporting investment was proof of the invariant commitment to the company and shareholders. Reminding past experiences, Dr Chandra remembered the period in 2019 that he could not fulfill his loyalty to the financial markets for the first time. The Zeel president also talked about a period in which ZEE sold 44 percent of shares in ZEE to pay over 40,000 RS, and in this process, the share of promoters in Zee was reduced to only 4 percent.

Accepting that other problems, especially the errors in the infrastructure business, also affect Zee Entertainment, “infrastructure business is a great mistake delivered to the wrong people,” he said. Most importantly, Zeel founder said that after paying the debt, he now put the amount of recovery back into the company.

1. What is the whole agreement?

The promoter group will invest in a total of 22,37,44,48,800 RS. After this investment, the total share of the supporters in the company will rise to 18.39 percent.

2. Why should you buy at a higher price than the market price?

Dr Chandra announced that the most positive thing about this agreement purchased shares at a price of 132 RS per order, which is more than the regulatory price, (128.58 RS). According to Dr Chandra, the biggest proof of how much trust they trust in the future of this company.

How will the shareholders benefit ‘double’?

In the interview, Dr Chandra said that increasing organizer holding will benefit the shareholders in many ways.

1. Restoration of Trust

Dr Chandra said that shareholders were uncomfortable with the supporter’s only 4 percent shares.

Minority shareholders also believe that no one other than the supporters can do a great and complex business like Zee.

Dr Chandra, increasing the share of supporters will strengthen the trust of investors.

2. Zee’s growth will gain momentum

Dr Chandra said the 2.237 RS Crore fund will act as a ‘booster dose’ for the company.

This money will be used mainly for growth in content and technology, strengthening the balance sheet and implementing the strategic growth plan rapidly, Dr Chandra, company Reliance and Disney will bring a better position to compete with competitors such as competitors, he added.

Road Map for the Future: What’s next?

Dr Chandra said there is still money to be paid in some accounts paid on the deadline. In addition, infrastructure money for 4-5 years stuck in the state governments, he said.

Zeel stock price increases

On Thursday, Zeel shares were traded at 144 RS with a 2 percent gain. In the last 1 month, the stock has won 10 percent. In the last 6 months, the stock has seen a growth of 14 percent.

(Waiver: DNA India and Zee Media are part of the Zee group. Consult your advisor before making any investment)