Zee Entertainment seeks one-day SAT extension for warrant

Zee Entertainment Enterprises has approached the Securities Appellate Tribunal (SAT) once more, requesting a one-day extension to complete the subscription of warrants by its promoter entity. The move follows a delay of around Rs 76 crore in transit, with the funds received after the earlier deadline, sources said. SAT is expected to hear the plea on Thursday. The additional money would enable Sunbright Mauritius Investments Limited, a promoter-group entity, to subscribe to warrants for up to 2.4 crore shares. This could lift the promoter stake by roughly two percentage points. Earlier, SAT had permitted Zee to raise funds from the promoter group and given a one-week window for the warrant subscription. That timeline ended on August 21. Zee had sought a two-week extension, but the tribunal granted only one week. Following the August 14 SAT relief—granted subject to conditions after SEBI’s July 31 order imposing market restrictions and penalties—Zee allotted 20.94 crore fully convertible warrants on August 21 at Rs 126 each. The company received 25% (Rs 31.50 per warrant), totaling Rs 659.76 crore. Full conversion within 18 months would take the promoter holding to about 17.9% on a fully diluted basis; the extra infusion could push overall promoter stake toward 24% from the current low single digits.