Zee Entertainment Enterprises Ltd (ZEEL) shares dropped over 4% in early trade after the company confirmed that its proposal to issue fully convertible warrants to promoter group entities failed to receive the required majority approval from shareholders. As of 9:27 AM, the shares were trading 4.28% lower at Rs 135.82.

In a regulatory filing, ZEEL stated that around 60% of voting shareholders supported the resolution. However, it did not cross the threshold needed for final approval. The company expressed gratitude to those who backed the proposal and said it respects the outcome of the vote.

Despite the setback, ZEEL reaffirmed its commitment to long-term value creation. The company said it is focused on strengthening both financial and operational performance, improving margins, and minimizing losses in its digital business.

Highlighting the need for a financial buffer amid a fast-evolving media landscape, ZEEL emphasized the importance of maintaining a “war chest” to fund innovation, support investments, and remain competitive.

A company spokesperson noted that ZEEL is leveraging its cash reserves, adopting a disciplined financial approach, and executing a forward-looking growth strategy under the guidance of a seasoned Board. The management reiterated its dedication to navigating market uncertainties while unlocking shareholder value.

Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information.