Zee Entertainment Enterprises approved a buyback of up to 65.93 million shares at ₹91 apiece, a 23.8% premium to the Nov. 12 close, with Nov. 25 set as the eligibility date.
The cash offer is capped at ₹6 billion (₹600 crore) and will use the tender-offer route. Zee’s Nov. 12 exchange filing says its promoters and promoter group intend not to participate.
The maximum covers 65,934,065 fully paid-up shares with a face value of ₹1 each, equivalent to 6.86% of Zee’s existing paid-up equity capital. The offer price compares with ₹73.50 at the National Stock Exchange of India close on Nov. 12.
Zee will allocate purchases proportionately and set aside a portion for small shareholders. Holders will receive cash only for shares accepted in the offer, while the company’s stated buyback cap excludes transaction costs such as fees, taxes and brokerage.
Before the board meeting, Zee said it would consider investor concerns about a recent share-price decline and weigh options that included a buyback and interim dividend. The board later said it reviewed the company’s financial strength, free cash flow, business outlook and investor feedback before approving the repurchase.
Zee Entertainment Chairman R. Gopalan said the company believes its market valuation does not reflect its intrinsic value.
Zee appointed Emkay Global Financial Services Ltd. to manage the buyback and said detailed offer documents and a timetable would follow. The board or its buyback committee can adjust the terms until one working day before the record date; a higher price would require a lower share limit to keep the total size unchanged.
