ZEE Promoters Take ₹2,639 Cr of Warrants at ₹126: ₹660 Cr Paid Up, 17.9% Diluted Stake, 18 Months to Convert
Promoter-group entity Sunbright Mauritius got 20.94 Cr warrants on Aug 21 at ₹126, 25% paid; 2.41 Cr more on Aug 27. Conversion within 18 months, or the upfront is forfeited.
₹101.51
Aug 28 close; ₹107.58 on Aug 21 (allotment date)
MID-CAP
by market cap ≈ ₹9,750 Cr (₹5,000–20,000 Cr)
₹126
+17.1% vs Aug 21 close; +24.1% vs Aug 28
₹735.5 Cr
25% of ₹2,942 Cr across two tranches
17.9% → ~19.6%
tranche 1 alone → both tranches, on full conversion
~₹9,750 Cr
96.05 Cr shares × ₹101.51
What was allotted
On August 21, ZEE's Preferential Issue and Allotment Committee allotted 20,94,47,805 fully convertible warrants to Sunbright Mauritius Investments Limited, described in the filing as a promoter-group entity, at ₹126 per warrant. The company received 25% of that price, ₹31.50 per warrant, or ₹659.76 crore. Each warrant converts into one ₹1 face-value share on payment of the remaining ₹94.50 within 18 months of allotment, in one or more tranches. If the balance is not paid, the warrants lapse and the upfront amount is forfeited.
The allotment follows a board resolution of July 1, a special resolution at the EGM of July 31, in-principle approvals from NSE and BSE dated July 27, and, per the filing, a Securities Appellate Tribunal order dated August 14. On August 27 a second tranche of 2,40,59,266 warrants was allotted on the same terms, with ₹75.79 crore received upfront, following a further SAT order of the same date.
20.94 Cr convertible warrants allotted to promoter-group entity Sunbright Mauritius at ₹126
₹659.76 Cr received as the 25% subscription price. Conversion at ₹94.50 more per warrant within 18 months of Aug 21, 2026. No change in paid-up capital until conversion. Diluted capital on full conversion: 116.99 Cr shares; the warrants represent 17.90% of that.
Read:At ₹126 the promoters are committing to a price 17% above the Aug 21 close, with 75% of the money still to be paid. Whether and when they convert is the question the next 18 months answer; until then the promoter shareholding is unchanged.
BSE filing, Aug 21/22, 2026Second tranche: 2.41 Cr warrants allotted on identical terms
2,40,59,266 warrants at ₹126, ₹75.79 Cr received upfront, 18 months from Aug 27 to convert. Combined warrants: 23,35,07,071; combined upfront: ₹735.55 Cr; combined issue value: ₹2,942 Cr.
Read:On full conversion of both tranches the promoter group would hold about 19.6% of the enlarged capital (23.35 Cr of 119.40 Cr shares), against 3.99% at June 30.
BSE filing, Aug 27, 2026Price, premium and dilution
Two things follow from the structure. First, the ₹660 crore already paid is a sunk commitment that is lost if the balance is not paid, which is the ordinary discipline of a warrant issue. Second, the company has no new shares outstanding yet: the 17.9% is a ceiling on dilution if every warrant is converted, not a current holding. The SAST disclosure records Sunbright's holding as nil shares and 20,94,47,805 warrants after the acquisition.
Results into which the issue lands
Q1 FY27 consolidated revenue was ₹1,907 crore with profit of ₹74 crore, after a ₹104 crore consolidated loss in Q4 FY26. The warrant money arrives against that backdrop; the filings do not state the intended use of proceeds beyond the preferential-issue resolution.
Price action around the allotments
The first allotment was filed at 00:17 IST on August 22, after the August 21 close of ₹107.58. The next session closed 2.8% lower at ₹104.57 on 3.7 crore shares; the following sessions were flat. The second allotment was filed at 20:31 IST on August 27; August 28 closed 2.4% lower at ₹101.51. The stock has not traded at the ₹126 warrant price since June.
60.4
Neutral
101.51
−14.2% from high; +49.3% from low
- vs 20-DMA (₹100.44)
- vs 50-DMA (₹104.24)
- vs 200-DMA (₹93.46)
Between the 20 and 50-day
₹126.00
Promoter conversion price; above the 52-week high
₹118.35
52-week high (Jun 23)
₹101.51
₹90.00
30-day low
The filings that would change this picture
conversion
Any conversion notice: warrants exercised, ₹94.50 paid per warrant, shares allotted. The first such filing changes promoter holding from 3.99%.
shp-q2
Q2 FY27 shareholding pattern (October): promoter holding and the warrants line.
sat-sebi
Further SAT or SEBI orders referenced in the allotment filings; the company has cited SAT orders dated Aug 14 and Aug 27 as conditions for allotment.
use-of-funds
Disclosure of use of the ₹735 crore received, in the next results or annual report.
q2-results
Q2 FY27 results against the Q1 FY27 base of ₹1,907 crore revenue and ₹74 crore consolidated profit.
The filings record a promoter-group entity subscribing to 23.35 crore convertible warrants at ₹126 in two tranches, paying ₹735.5 crore upfront and taking 18 months to decide on the balance. On full conversion the promoter group would hold roughly a fifth of the company, from about 4% today.
The numbers that matter are on the record: ₹126 against a market price of ₹101.51, ₹2,206.6 crore still to be paid, and a deadline in February 2028. Conversion, not allotment, is the event that changes the shareholding.
Informational and educational content only. Not investment advice.