Zee Media Corporation Limited’s (ZMCL) common stock rose 4.96%, reaching Rs 20 10 per share. The stock had been trading around Rs 19 earlier. It is a remarkable recovery, as the stock has climbed up to Rs 20 which is more than double its three-month lows of around Rs 10. The promoters of the company showed faith once again and purchased a further 2,197,375 shares in June 2024, thus increasing their stake from 0.07% as of March 2024 to 0.42%.

ZMCL has also published its report on performance for the quarter ended September 2024, indicating an expanded consolidated net loss which reports at 49.86 crore rupees for the period as compared to a loss of about 30.70 crore rupees during the corresponding period. Operational revenue perspectives have also weakened decreasing by 13.78% from the revenues of Rs. 151.59 crores which were made in the last financial year to Rs. 130.70 crores. Consolidated income also fell by 13.43% reporting 133.12 crores, and costs increased by 1.64% YoY to Rs. 199.65 crores.

ZMCL shares virtually lost all their quarterly earnings last year; on the other hand, ZMCL’s digital operations are doing well with the company garnering 1.9 billion page views and 214 million monthly active users across 18 brands which have been launched in 11 languages.

According to ComScore data of the last 24 September, the digital portfolio saw Zee Digital positioned third as the most visited platform under the news and information segment.

Zee Media while explaining its further enlargement plans has announced making a strategic investment in Flutrr Digimate Private Limited, a technology solutions company in the area of IT Enabled Services. Such an investment worth rupees three seventy-five million two hundred twenty-two thousand three hundred ninety-one has been done via Zee Akaash News Private Limited, which is the wholly owned subsidiary of ZMCL. It consists of a subscription to the equity shares and the convertible warrants of Flutrr with completion of said transaction expected by 31 December 2024 subject to regulatory and procedural requirements. The acquisition is a standalone transaction with no connection to Zee Media’s promoter group which reflects the strategic investment focus of ZMCL in expansion of its technological edge and market presence.

Apart from this, it was earlier reported that Zee Media’s board had issued 13,33,33,333 warrants at Rs 15 per warrant accumulated to a total of Rs 200 crores. These warrants which were completely convertible to equity shares at the same price are non-promoter targeted and not so surprisingly drew many FIIs’ interests including UNICO Global Opportunities Fund Limited, AL Maha Investment Fund PCC – Onyx Strategy, Ebisu Global Opportunities Fund Limited.

The first subscription entails 25% payable immediately, while the remaining 75% is payable 18 months after the conversion.

Zee Media Corporation Ltd. has grown into a significant entity in India’s news broadcasting since its inception in 1999. In addition, ZMCL is the owner of a strong network of 15 news channels (3 national, 11 regional and one international) that provide information coverage of a wide range of news people all over India in several languages. The news website, Zeenews.com, subtitled in 9 languages, serves more than 280 million users indicating ZMCL’s dedication to the needs of the growing digital news audiences in India.

Story first published: Wednesday, October 30, 2024, 12:00 [IST]