Zee secures shareholder approval to raise Rs 2000 crore

Zee Entertainment Enterprises has obtained shareholder approval to raise Rs 2,000 crore, the company announced in a letter to the Stock exchanges.

"We hereby inform you that the shareholders of the company have duly passed the resolution for issuance of securities for an amount not exceeding Rs 2,000 crore with the requisite majority," Zee stated in the letter.

During its recent earnings call, chief executive and managing director Punit Goenka stated that Zee is on track to achieve a balanced cost structure and improve its fiscal performance, aiming for an 18-20% EBITDA margin by 2025-26. After the collapse of its merger with Sony Pictures Entertainment in February, Zee announced a three-pronged strategy to restore margins, focusing on cost reduction, eliminating business overlaps, and enhancing quality.

The company also plans to reduce its workforce by 15% as part of a restructuring effort aimed at creating a leaner management structure and reducing costs.

Zee's board of directors has approved a new organisational framework proposed by Goenka, wherein he will now directly oversee the company's domestic broadcast business. This restructuring aims to enhance synergies across core business segments, encompassing broadcast, digital, movies, and music.

Goenka intends to assume direct oversight of key business areas to foster cross-functional collaboration. In recent months, the company has witnessed several senior-level departures, including Rahul Johri, president of business; Punit Misra, president of content and international markets; Nitin Mittal, president and group chief technology officer; and Shariq Patel, chief business officer at Zee Studios.