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Zee to invest Rs 2 bn; shelves ADR

Indian television and media company Zee Telefilms Limited will not make an American depository receipt, or ADR, issue at the moment, chairman Subhash Chandra said on Monday.

"At the moment we are not going," he said in reply to a question on Zee's ADR plans on the sidelines of an

investment conference.

The company had in April this year taken its shareholders' permission to raise $ 1.5 billion through the issue of ADRs but had subsequently decided to raise only $ 200 million.

Chandra said he was not sure when the issue will be made.

Zee Telefilms also signed an agreement with Karnataka to invest over Rs 2 billion to lay fibre-optic network in India's technology capital Bangalore city, a state government official said at the conference.

In afternoon trade, Zee's shares were trading Rs 44.50 higher at Rs 592 on the Bombay Stock Exchange.

New York Stock Exchange Chairman Richard Grasso told a news conference last month that Zee will list its proposed ADR on the NYSE.

Zee officials had said the proceeds from the ADR issue would be used to invest in new media activities, acquire content and to boost its distribution network.

The Zee group, reaches 140 million people in 25 million homes in India and another 70 million viewers in 15 million homes overseas.

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