Zee Entertainment Enterprises Ltd. (ZEEL) announced on Thursday that its board has approved a share buyback program valued at ₹600 crore. The company will repurchase up to 65,934,065 fully paid-up equity shares, each with a face value of Re 1, at a price of ₹91 per share.
This proposed buyback represents 6.86 percent of ZEEL's total paid-up equity share capital. The offer price of ₹91 per share provides a significant premium of 23.81 percent over the ₹73.50 closing price of ZEEL shares on Thursday on the BSE, where they had risen 3.70 percent earlier in the day.
The company has set November 25, 2026, as the record date to determine which shareholders will be eligible to participate in the buyback offer. Promoters and members of the promoter group have indicated their intention not to participate in this proposed buyback.
Reinforcing Confidence in ZEEL's Value
R Gopalan, Chairman at ZEEL, commented on the board's decision, stating, “The decision to approve the buy-back of equity shares reflects our confidence in the Company's potential and fundamental strength to capitalize on the opportunities in the future.” He further added that the board believes ZEEL's intrinsic value is not adequately reflected in its current market valuation, and the buyback serves as a prudent opportunity to reinforce confidence in the company's capability to generate long-term value for its shareholders.
Gopalan highlighted that the board conducted a thorough assessment of ZEEL's financial health, growth strategies, and shareholder expectations. Management also presented their approach for the company's medium to long-term growth, focusing on strengthening both its top and bottom lines.