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Zee gets nod to raise $ 1.5 billion overseas

Indian private television network Zee Telefilms received shareholder approval on Monday to raise up to $ 1.5 billion on overseas equity markets.

The approval means the company can go ahead with plans to issues up to 40 million shares, through American depository receipts or global depository receipts, Zee Telefilms' global finance officer B R Jaju said.

Analysts said this would be the biggest overseas share-float by an Indian company.

Jaju said the company was in the process of finalising various US regulatory approvals and drawing up its growth plans.

"We are, therefore, unable to say when the listing would take place. Certain things such as regulatory approvals are not within our control."

Jaju said that the company planned to list either on the technology-heavy NASDAQ exchange in the US or on the New York Stock Exchange.

"Our main criterion is how investor-friendly the exchange is," he said.

Jaju said the funds raised overseas would be used for the company's expansion and diversification plans in the media and Internet-related areas.

"We want to strengthen our distribution network, increase our content and lay optical fibre cables, among other things."

Zee Telefilms share price on Monday closed up Rs 72.55, or 8.0 per cent, at Rs 979.70.

Zee is India's largest private television network with 10 channels and a total viewership of 130 million people.

Analyst Satish Menon, at domestic brokerage Geojit Securities, said the overseas equity raising would be "good" for the company.

"Zee has several good projects and with the current boom in the entertainment industry, the company is on a sound growth path," he said.

"Overseas listing means more transparency in accounting procedures and this is good for domestic shareholders as well," he added.