Zee Entertainment Enterprises’ board has approved a fundraise of up to $239.6 million, the Indian broadcaster announced on Thursday.
Earlier this year, the company faced setbacks with two major deals: a $10 billion merger with Sony India and a $1.4 billion cricket broadcasting deal with Walt Disney. These failures forced Zee to cut costs and reduce losses to meet key profit targets.
Zee stated that the funds would be used to “enhance its strategic flexibility to pursue future growth opportunities in the evolving media landscape.” The company plans to raise the funds through equity shares or other eligible securities, via private placements, qualified institutional placements, and preferential issues.
Amid the fallout from these deals and ongoing legal battles, Zee is also contending with new competition following the merger of Reliance and Disney’s Indian assets, which created an $8.5 billion media giant. Zee shares, which had lost 4.5% since the Sony merger’s collapse in January, were trading 5.2% higher after the fundraise announcement.