Zee Entertainment Enterprises Ltd (ZEEL) on Thursday approved a share buyback worth up to Rs 600 crore. The company will buy back its shares at Rs 91 each, a price that sits about 24% above the Rs 73.50 at which the stock closed on the NSE.
Details of the offer
The board has cleared the repurchase of up to 6,59,34,065 fully paid-up equity shares, each with a face value of Re 1. The buyback will be carried out through the tender offer route, and the Rs 91 price will be paid in cash. The total outlay will not exceed Rs 600 crore.
According to the company’s regulatory filing, the proposed buyback equals 7.22% of the aggregate paid-up equity share capital and free reserves in its standalone audited accounts, and 6.61% based on its consolidated audited accounts. Both figures are as of March 31, 2026.
The board has fixed November 25, 2026 as the record date, which determines which shareholders can take part. The offer will be made on a proportionate basis. Reservations for small shareholders will follow Securities and Exchange Board of India (SEBI) rules.
Promoters stay out
The promoters and members of the promoter group have said they will not tender their shares in the buyback. That leaves the offer open to other shareholders.
Why the board took this step
Zee Entertainment said the decision followed a review of its financial strength, free cash flow and business outlook. The board also weighed other options and took feedback from investors and shareholders.
R Gopalan, chairman of Zee Entertainment, said the board believes the company’s intrinsic value is not fully reflected in its current market valuation. He said the buyback was a sensible way to signal confidence in the company’s ability to create long-term value for shareholders.
Gopalan added that the board had looked closely at the company’s financial position, its growth plans and what shareholders expect. Management also outlined its plans for medium- and long-term growth, with a focus on lifting both revenue and profit.
Punit Goenka, chief executive of Zee Entertainment, said the company had taken steps to build its capabilities and sharpen its strategy across content, digital and newer growth areas. He said the company also aims to improve operational efficiency.
What comes next
The company said it will keep focusing on its core businesses and on faster digital growth. It also plans to roll out technology-led innovations across its platforms and look for new ways to earn revenue.
To run the process, the board has set up a buyback committee and given it the powers needed to carry out the offer. Sangeeta Shetty, chief compliance officer and company secretary, has been named compliance officer for the buyback. Emkay Global Financial Services has been appointed manager to the offer.
Under applicable regulations, the board or the buyback committee may raise the buyback price and cut the number of shares to be bought back accordingly. The overall buyback size would stay the same. Any such change can be made up to one working day before the record date.
The company said a public announcement and other documents setting out the process and timelines will be issued in due course.