Global pension funds support Zee resolution to hike promoter stake

Three global pension funds have expressed support for Zee Entertainment’s proposal to hike promoter stake in the company through the issue of convertible warrants on a preferential basis, according to information available on the proxy voting solution provider Glass Lewis.

The platform showed that California State Teachers’ Retirement Systems, Florida State Board of Administration and California Public Employees’ Retirement System (CalPERS) have voted in favour of the resolution for the promoters to infuse funds worth ₹2,237.4 crore into the company and enhance their stake to 18.39 per cent.

A special meeting of the shareholders will be held on July 10 to approve the proposal.

In mid-June, the Zee’s Board of Directors approved issuing fully convertible warrants to the promoter group “to enhance the company’s financial foundation” as well as to implement the company’s new strategic plans for content & technology.

The decision was taken after a presentation by investment bank J P Morgan India before the Zee board and pointed out that enhancing Zee’s financial foundation would be in the best interest of the company.

The Board approved enhancement of promoter shareholding by issuance of upto 16.95 crore fully convertible warrants to promoter group entities on a preferential basis, at ₹132 per warrant, higher than the prescribed norm by ₹3.42 per warrant

California Public Employees’ Retirement System (CalPERS) is the largest US public pension plan, managing defined-benefit programs for over 1.5 million California public employees, retirees and their families, with assets surpassing $540 billion. Similarly, CalSTRS or California State Teachers’ Retirement System is one of the world’s largest public pension funds, managing retirement benefits for California’s public educators, while the Florida State Board of Administration (SBA) is an independent investment management organisation that oversees assets for more than 30 state-mandated funds in the US.

.Last week, some proxy advisory firms had reportedly recommended shareholders to vote against the proposed fund raise, considering the excessive dilution from the proposed warrants issue and challenges faced by the company.

Published on July 1, 2025