Zee Media Shares in Focus as Company Allots 3,960 FCCBs to Sun India Opportunities Fund

The FCCBs carry a 5% coupon and have a tenure of 10 years. The total issue size works out to approximately US$3.96 million.

Zee Media FCCB conversion details

According to the filing, Sun India Opportunities Investing Fund will be entitled to receive an aggregate of 2,51,70,552 fully paid-up equity shares if it exercises the conversion option attached to the FCCBs.

The conversion price has been fixed at ₹13.50 per equity share, including a premium of ₹12.50 per share. The company said the conversion price remains subject to adjustments in accordance with the agreed terms and applicable laws.

The conversion of the FCCBs will be at the option of the FCCB holder, according to the company.

No immediate change in paid-up share capital

Zee Media clarified that there is no change in its paid-up share capital at the current stage, as the company has only allotted the FCCBs to the investor.

The securities were issued through a private placement, with Sun India Opportunities Investing Fund being the sole investor. The fund falls under the public category, classified as a non-promoter/non-promoter group entity.

What investors should track

The FCCB allotment provides Zee Media with access to foreign currency funding while potentially bringing in fresh equity capital if the bonds are converted into shares.

However, investors will also need to monitor the potential impact of the proposed conversion on the company’s equity structure. If all the FCCBs are converted at the current conversion price, 2.52 crore new equity shares could be issued to the investor, subject to the terms of the instrument and applicable regulations.

For now, the transaction does not immediately increase the company’s paid-up equity capital. The key trigger for shareholders will be whether and when the FCCBs are converted into equity.

Zee Media Corporation is listed on both the National Stock Exchange of India (NSE) under the symbol ZEEMEDIA and the BSE under scrip code 532794.