Zee Entertainment’s shares rose over 6% following the Securities Appellate Tribunal’s interim relief, allowing the company to proceed with a Rs 3,143.5 crore warrant issue amid ongoing regulatory scrutiny.
Zee Entertainment Enterprises shares climbed more than 6% on Friday after the Securities Appellate Tribunal gave the company interim relief in its dispute with the Securities and Exchange Board of India. According to NDTV Profit, the tribunal allowed Zee to move ahead with a proposed preferential warrant issue and to use mutual fund investments to pay dividends, although the relief was linked to a penalty deposit condition.
By midday, the stock was quoted at Rs 102.70 on the National Stock Exchange, compared with the previous close of Rs 96.75, while the Nifty 50 was lower by about 0.3%. The tribunal’s order is not a final verdict, but it does clear a path for the company to keep its financing plans moving while the wider case continues.
The relief comes after Zee’s board approved a preferential issue of fully convertible warrants worth up to Rs 3,143.5 crore to promoter group entity Sunbright Mauritius Investments. Under the plan, the investor is to pay 25% upfront, with the rest due at conversion, and each warrant can be turned into one equity share at Rs 126. The company has said the proceeds are earmarked for sports rights, new content, digital initiatives and possible acquisitions in music, digital platforms and visual effects services.
The proposal has also drawn scrutiny from proxy advisers. According to reports in the Financial Express and other business publications, InGovern urged shareholders to vote against the issue on governance grounds and dilution concerns, while Stakeholders Empowerment Services recommended approval, saying the company was in regulatory compliance. Zee’s shares have gained close to 13% so far in 2026, though they have been broadly flat over the past month.
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