Zee Entertainment Enterprises Ltd (Rs.134.52)

I want to highlight a few points here:

💢Q. What is the coupon rate of FCCBs?

Ans. The coupon rate is 5%, which will be applicable for 10 years. This is substantially lower than the 11%/12% PLR which is generally available in India. 

💢Q. What is the conversion price of FCCBs after 10 years?

Ans. The conversion price is Rs.160 per share. 

💢Q. What is the total consideration under FCCB?

Ans. The total amount is$239 million (Rs.1960 Cr).

💢Q. Does ZEEL have presence in OTT platform?

Ans. ZEEL has presence both in Television segment and OTT platforms. ZEE5 is the brand new digital entertainment destination launched by Zee Entertainment Enterprises Ltd. It is in OTT platform. 

Hence, if competition hardens in TV segment, it may shift a substantial chunk or altogether to the OTT platforms. 

💢Q. What could be approximately price of the ZEEL shares after 10 years?

Ans. It is hard to predict its price after 10 years, however if we take an incremental INFLATION figure into consideration we could see a substantial rise in its share price (as a going concern) considering the current management guidance and their optimism.

Q. What does the company want to do with the FCCB?

Ans. This is an Irrelevant question, since the funds are used for the growth of any company. Hope the management, under the able leadership of Puneet Goenka will utilise the funds to increase shareholders value.

💢Q. Since it is FCCB and hence it is affected by the USD ($) Vs INR (Rs) ratio. Will it have any adverse effect on the company?

Ans.