Is Zee Media raising Rs 200 crore via rights issue to launch news channels

Thakur

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MUMBAI: Zee Media Corporation Ltd (ZMCL), which houses a clutch of news channels and news daily dna, is planning to raise Rs 200
crore (Rs 2 billion) through a rights issue.

The company has not revealed how the funds will be utilised. The market speculation, however, is that it could be for launching
television news channels.

ZMCL has been exploring the launch of an English-language
news channel for long.

The company has a net debt of around Rs 400 crore (4 billion). So will the rights issue be used to reduce debt? Market analysts said this is an unlikely possibility.

“We are expecting Zee Media to launch news channels. It looks more probable that it will launch an English news channel.

They could launch regional-language news channels but
wouldn’t have raised capital through a rights issue for this,” a market analyst said.

The speculation also fuels from ZMCL CEO Ashish Pandit’s statement in the company’s fiscal second quarter earnings release.

“Our focus will be geared towards brand building and increasing reach through new launches.”
In the last fiscal, Zee Media and TV18 were the only two listed news companies which expanded by way of launching more news
channels in the regional space.

While ZMCL has a network of 10 news and current affairs channels, a missing piece is an English news
channel from its bouquet of offering.

Zee has also been looking at launching dna in Delhi. Dna, however, recently closed down its
Bangalore and Pune editions. http://www.televisionpost.com/television/is-zee-media-raising-rs-200-crore-via-rights-issue-to-launch-news-channels/
 
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