The board of Zee Media Corporation Ltd (ZMCL) on Friday approved a preferential issue worth Rs 200 crore via warrants to foreign portfolio investors. The warrants will be fully convertible into an equal number of shares at a price of 15 per share.

ZMCL said in a regulatory filing that the warrants will be issued to UNICO Global Opportunities Fund, AL Maha Investment Fund PCC-Onyx Strategy and Ebisu Global Opportunities Fund Ltd.

Upon conversion while UNICO Global Opportunities Fund will have a stake of 5.04 per cent, the other two investors will have a shareholding of 5.03 per cent and 4.85 per cent, respectively. UNICO is an existing investor in the company holding 50,000 shares translating to a 0.01 per cent stake.

The fund-raising plan led to the shares of ZMCL being frozen at the upper circuit. It settled 9.99 per cent higher at 20.70 on the BSE. ZMCL said it will issue up to 13.33 crore warrants at an issue price of 15 per warrant aggregating to 200 crore. Each warrant will be convertible into one share at a price of 15 per share.

ZMCL said the rights attached to warrants may be exercised by the warrant holder, in one or more tranches, at any time on or before the expiry of 18 months from the date of allotment of these instruments.

In the event of the warrant holder not exercising the rights attached to the instrument within 18 months from their date of allotment, such unexercised warrants shall lapse and the amount paid to the company at the time of subscription of such unexercised warrants shall stand forfeited. ZMCL will be holding an extraordinary general meeting on October 22 to seek shareholder approval for the preferential issue.