NEW DELHI: Zee Media has replied to the queries sent by Securities and Exchange Board of India (SEBI) from the merchant banker of Zee Media Corporation regarding the company's proposed Rs 200 crore rights issue. 

Zee Media sources in Mumbai told Indiantelevision.com that it had earlier sent a response to SEBI on 21 January but the regulator thereafter sought further queries. These had been answered well in time, the sources added.

The sources declined to give more details as it said the issue was at a delicate stage.

However, the sources clarified that in a rights issue, shares are issued to existing investors as per their holding at pre-determined price and ratio. 

As per the latest weekly update to the processing status of draft offer documents filed with SEBI, the regulator has said clarifications were awaited on the proposed rights issue of Zee Media as on 23 January this year. 

SEBI had said that it might issue observations on Zee Media document within 30 days from the date of receipt of satisfactory reply from the lead merchant bankers to the clarification or additional information sought from them. 

The regulator had received the draft offer documents on 2 January this year through its lead manager Axis Capital. The company's proposed rights issue is estimated to be raised up to Rs 200 crore. 

The funds raised from the issue would be utilised towards purchase of equipment and accessories for production and broadcasting, repayment of certain loans availed by the company, funding subsidiaries for repayment of loans, and other general corporate purposes. 

Zee Media Corporation Ltd (ZMCL) broadcasts 10 news channels including two national ones - Zee News and Zee Business.

Earlier in October, the company's board of directors had “approved, in-principle, raising of funds for an amount not exceeding Rs 200 crore through issue of equity shares of the company to its eligible shareholders.”