Zee approves ₹600 crore buyback at ₹91 per share plan

ZEEL has approved a share buyback worth up to ₹600 crore at a price of ₹91 per share through the tender offer route. Key buyback details: Total buyback size: Up to ₹600 crore. Buyback price: ₹91 per share. Market closing price: ₹73.50. Premium: Approximately 23.8% over the previous NSE closing price. Maximum shares: Up to 6.59 crore equity shares. Capital represented: Up to 6.86% of existing paid-up equity share capital. Record date: November 25, 2026. Small shareholders: 15% of the buyback size or the entitled number of shares has been reserved for small shareholders. Promoter participation: Promoters and promoter group members will not participate. The buyback is a positive shareholder-return initiative. The ₹91 offer price represents a substantial premium to the previous closing price of ₹73.50. The company has cited strong free cash flows and its view that the market valuation is below intrinsic fundamentals. Emkay Global Financial Services has been appointed as the merchant banker. The board has also retained the option to increase the buyback price up to one working day before the record date. However, investors should understand that the 23.8% premium is not a guaranteed return on every shareholding. Actual acceptance will depend on the tender process and acceptance ratio. The buyback will also result in a cash outflow for the company. My View: The ₹600 crore buyback at ₹91 per share is a positive development for ZEEL shareholders. The premium, promoter non-participation and small-shareholder reservation make the offer noteworthy. However, the actual benefit to an investor will depend on the number of shares accepted in the tender offer and the final buyback terms. What to watch: November 25, 2026 record date and shareholder eligibility. Final buyback price and tender-offer schedule. Acceptance ratio, particularly for small shareholders. Impact of the ₹600 crore cash outflow on the company's financial position. Stance: ZEEL – POSITIVE (8/10)