Zee Entertainment approves share buyback worth Rs 600 crore at Rs 91 per share

Zee Entertainment Enterprises Ltd (ZEEL) on Thursday announced that its board has approved a buyback of up to 6.59 crore equity shares for an aggregate amount of up to Rs 600 crore, at a price of Rs 91 per share.

The buyback, representing 6.86 per cent of the company's total paid-up equity share capital, will be carried out through the tender offer route. The shares have a face value of Re 1 each.

According to the company, the decision followed a detailed assessment of its financial position, free cash flow, business outlook and shareholder expectations. The board also evaluated alternative options and considered feedback from investors before approving the buyback.

The company said the proposed buyback is aimed at enhancing shareholder returns and reinforcing investor confidence in its long-term growth prospects. It added that the promoters and members of the promoter group intend not to participate in the buyback.

Commenting on the decision, Zee Entertainment Chairman R. Gopalan said the board believed the company's intrinsic value was not adequately reflected in its current market valuation.

He said the buyback was considered a prudent measure to safeguard shareholder interests and deploy the company's capital in a manner that creates long-term value. He added that the board had also reviewed the company's growth plans and management's strategy to strengthen revenue and profitability over the medium to long term.

Chief Executive Officer Punit Goenka said the company had taken steps to strengthen its capabilities, sharpen its strategic focus across content and digital businesses, explore emerging growth opportunities and improve operational efficiencies.

He added the company remained focused on executing its strategic priorities and pursuing sustainable growth while creating long-term value for shareholders.

Zee Entertainment also highlighted its continued efforts to reward shareholders through dividends, including during challenging macroeconomic conditions and changing industry dynamics.

The company said it had also introduced initiatives such as the 'Truly Yours' Employee Stock Option Plan to align employee interests with its long-term growth objectives.

Looking ahead, Zee Entertainment said it would focus on strengthening its core businesses, accelerating digital growth, adopting technology-led innovations across platforms and exploring new monetisation opportunities in high-potential segments.

The company said these initiatives were part of its broader strategy to increase its presence in the evolving attention economy.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)