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Zee Media shares jump after FCCB allotment to Mauritius FPI

The board approved the private placement of 3,960 foreign currency convertible bonds with a 5% coupon, convertible at ₹13.50 per share.

Reported · Written up by our desk · M&A & Deals

Zee Media Corporation Ltd shares surged in early trading after the company’s board allotted foreign currency convertible bonds to a Mauritius-based foreign portfolio investor, according to LiveMint Markets.

The stock opened flat at ₹7.46 on the NSE and later hit an intraday high of ₹8.20, marking an intraday gain of around 10%, the outlet reported.

At a board meeting on Thursday, Zee Media approved the allotment of 3,960 FCCBs to Sun India Opportunities Investing Fund on a private placement basis. The bonds carry a 5% coupon, are unsecured, unlisted, and are set to mature in 10 years, LiveMint Markets said.

Zee Media added that, upon conversion at the option of the FCCB holder, the investor would be entitled to receive 2,51,70,552 fully paid equity shares at a conversion price of ₹13.50 per share, including a premium of ₹12.50. The company said the allotment does not change its paid-up share capital at this stage, while the stock’s recent selling pressure set the context for the day’s rebound, the outlet noted.

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