Shares of Zee Entertainment Enterprises Ltd plummeted 20% on 4 June after the company announced that its Board of Directors are set to meet to consider and approve raising funds.

In its regulatory filing, the company said, “A meeting of the Board of Directors of the Company is scheduled to be held on… 6 June, inter-alia, to consider raising of funds by way of issuance of equity shares and/or any other eligible securities (convertible/non-convertible) through permissible mode.”

The fundraising will not be limited to private placement, preferential issues, Qualified Institutional Placement (QIP), or any other combination of methods that are subject to approval. 

This round of fundraising comes after Sony Corporation terminated a deal to merge its two entertainment entities in India.

Since the $10 billion merger fell through with Sony, the company is demanding $90 million in termination fees from Sony for terminating the deal. 

Furthermore, the company cut costs after the merger collapsed by reducing its workforce by 15%. The company also laid off 50% of its staff at its Bengaluru-based Technology and Innovation Centre. 

At 3:30 pm, the shares of Zee Entertainment closed 10.43% lower at Rs 140 on NSE.