Zee Entertainment Shares Jump As Promoter Infusion Signals Confidence, But SEBI RAs Remain Cautious

Analysts believe that Zee’s warrants issue shows promoter intent, but technical and structural challenges remain.

Zee Entertainment shares rose 0.7% on Tuesday after the board approved issuing nearly 17 crore fully convertible warrants at ₹132 each, raising approximately ₹2,237 crore. 

This move increases promoter stake from 3.99% to 18.4%, with funds provisionally paid via ₹33-per-warrant upfront and balance due over 18 months. 

At the time of writing, Zee Entertainment shares were trading at ₹138.75.

SEBI-registered analyst Ketan Mittal called the promoters’ capital infusion “a credible move,” saying it infuses confidence, but the challenges remain intact. 

He added that how the fresh capital gets used will be a “big indicator” of whether the stock recovers or not.

Meanwhile, SEBI-registered analyst Mayank Singh Chandel noted that warrants were issued above SEBI’s minimum price of ₹128.58, signaling promoter confidence. 

However, he cautioned that Zee remains in a multi-year downtrend with lower highs and lower lows, referencing the January 2024 gap down. 

While the stock has moved above its 200-day EMA (₹125.10) since March, Chandel said this might be a bull trap. He noted that the 50-day EMA (₹122.41) remains below the 200-day EMA, a signal that the overall trend remains weak.

He identified resistance at ₹140.5–₹144.5, ₹165–₹170, and ₹205–₹230, adding that the Relative Strength Index near 73 suggests overbought conditions that “often lead to a pullback or consolidation.”

On Stocktwits, retail sentiment was ‘bullish’ amid ‘high’ message volume.

The stock has risen 12.7% so far in 2025.<