Shares of Zee Entertainment Enterprises Limited jumped over 8 percent on Friday after the Securities Appellate Tribunal granted significant interim relief by staying the operative effect of a recent SEBI order. The tribunal's decision allows the media major to move ahead with its planned 3,143 crore rupee preferential issue of fully convertible warrants to promoter entity Sunbright Mauritius Investments.
In addition to clearing the runway for the crucial capital infusion, the appellate tribunal also permitted the broadcaster to access its mutual fund units to pay out dividends, subject to depositing the fine levied by the capital markets regulator.
The legal breather comes just days after the market regulator barred the broadcaster from tapping the capital markets for two months and handed down a one-year ban to CEO Punit Goenka over alleged unauthorized corporate guarantees tied to a Hyderabad property. During the appellate hearings.
The bench questioned why the time-sensitive fundraise should be blocked when shareholders had already given their approval and no active fraud charges were made against the company itself. With the tribunal putting the regulatory freeze on hold, investors rushed back into the counter, driving heavy trading volumes as the company moves to lock in the promoter funding and strengthen its balance sheet.