Zee Media Corporation Limited stock is trading marginally up today. Recently, the company has sought the SEBI's approval to raise up to Rs. 200 crore through a rights issue. The rights issue is for the eligible equity shareholders of the company. The company would issue equity shares for an aggregate amount up to Rs. 2,000 million on rights basis, a draft letter filed by the company with SEBI showed.
Zee Media Corp, with 10 channels, reaches out to over 130 million viewers through its national and regional channels across India as well as those of its digital properties like zeenews.com and dnaindia.com.
In an interview with CNBC TV18, Ashish Kripal Pandit, CEO, Zee Media Corporation, said that Rs. 200 crore which the company has raised, will be spending Rs. 45 crore on capex, about 90-100 crore on loan repayment per se and the rest will be used for corporate purposes. Talking about the ad revenues and subscription company is expecting in the next quarter, he said, "We have been outperforming the industry in ad revenue growth while our focus remains on pure play advertising, we are also connected with our clients to add value to their brands for marqee events and custom content solutions. Also going forward, our regional channels will stabilise and will start yielding positive returns. For the subscription revenue, the subset date of digitization has been pushed beyond a deadline. As a result, the benefit that the industry was expecting to flow in from digitisation is below par".
The company is set to launch four new regional channels in Orissa, in Bihar and Jharkhand, in Rajasthan and in Madhya Pradesh Chattisgarh (MPCG). At the same time, the company is planning to launch a new business channel.
Commenting on the purpose to raise money, he said, "The plan is to raise up to Rs 200 crore and Zee has been a pioneer in the broadcasting arena in the country and keeping with those tradition, the company seeks to expand its horizon and expand its capacity in the field through the proposed rights issue. We would essentially be using these funds raised from the rights issue for capital expenditure primarily on purchase of equipment and accessories to enhance our broadcasting operations".
Zee Media Corp, with 10 channels, reaches out to over 130 million viewers through its national and regional channels across India as well as those of its digital properties like zeenews.com and dnaindia.com.
In an interview with CNBC TV18, Ashish Kripal Pandit, CEO, Zee Media Corporation, said that Rs. 200 crore which the company has raised, will be spending Rs. 45 crore on capex, about 90-100 crore on loan repayment per se and the rest will be used for corporate purposes. Talking about the ad revenues and subscription company is expecting in the next quarter, he said, "We have been outperforming the industry in ad revenue growth while our focus remains on pure play advertising, we are also connected with our clients to add value to their brands for marqee events and custom content solutions. Also going forward, our regional channels will stabilise and will start yielding positive returns. For the subscription revenue, the subset date of digitization has been pushed beyond a deadline. As a result, the benefit that the industry was expecting to flow in from digitisation is below par".
The company is set to launch four new regional channels in Orissa, in Bihar and Jharkhand, in Rajasthan and in Madhya Pradesh Chattisgarh (MPCG). At the same time, the company is planning to launch a new business channel.
Commenting on the purpose to raise money, he said, "The plan is to raise up to Rs 200 crore and Zee has been a pioneer in the broadcasting arena in the country and keeping with those tradition, the company seeks to expand its horizon and expand its capacity in the field through the proposed rights issue. We would essentially be using these funds raised from the rights issue for capital expenditure primarily on purchase of equipment and accessories to enhance our broadcasting operations".
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