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CLSA has maintained a ‘Hold’ on Zee Entertainment with a target price of Rs 150 after the media company got approval of shareholders to raise Rs 2,000 crore through various routes, including issuing equity shares and qualified institutional placements (QIPs).
According to analysts at CLSA, despite having a cash reserve of Rs 1,200 crore and low capital expenditure requirements, Zee’s decision to pursue a fund-raising plan has raised some questions.
The company has moved past its peak investments in OTT platform Zee5 and has met its working capital requirement, the CLSA note said.
Source: Money Control
Disc: 3% of pf
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