Zee Entertainment announces Rs700 crore share buyback

Essel Group company Zee Entertainment Enterprises Ltd (ZEEL) today said it would undertake a share buyback programme that would entail an outgo of up to Rs700 crore.

In a filing to the Bombay Stock Exchange, the company said it would buy back its fully paid-up equity shares of Re1 face value each at a price not exceeding Rs126 per equity share.

The company has proposed a buyback of a minimum 1.26 crore equity shares from existing shareholders other than the promoters, it said.

"The maximum buyback size is within 25 per cent of the aggregate of the company's paid-up equity capital and free reserves as on 31 March  2010," the filing added.

According to the company, the actual number of equity shares that it would buyback would depend upon the average price paid for the equity shares bought back and the amount deployed in the buyback in accordance with the resolution passed by the board of directors on 11February, 2011, it said.

The buyback offer is to open on 27July, 2011 and close on 23 March, 2012.