Zee Entertainment Enterprises (ZEEL) has received government approval for a Rs 418 crore (approximately $46.03 million) foreign investment from OFI Global China Fund LLC, according to data released by the Department for Promotion of Industry and Internal Trade (DPIIT). The investment has been approved under the foreign direct investment (FDI) route for the acquisition of shares during the January–March quarter of FY26.
The approval has marked the return of the Invesco-managed fund to Zee Entertainment’s shareholder base nearly three years after its exit, as per media reports. According to DPIIT data, the proposal has been among 1,141 FDI proposals cleared during the quarter.
The investment has come as Zee Entertainment has continued to navigate challenges in its television broadcasting business, while its digital business has reported operational profitability following cost rationalisation and revenue growth.
Invesco had exited Zee Entertainment in 2023 after a prolonged corporate governance dispute. In April 2023, OFI Global China Fund LLC had sold its 5.11% stake in the company through block deals worth around Rs 1,004 crore by offloading 49.1 million shares at Rs 204.50 per share.
Earlier, Invesco had sought the removal of CEO Punit Goenka from the company’s board and had requisitioned an extraordinary general meeting to reconstitute the board. The fund had later backed the proposed merger between Zee Entertainment and Sony Pictures Networks India before exiting its investment through a series of block deals. At its peak, Invesco had held nearly an 18% stake in Zee after acquiring an 11% stake from the Goenka family for Rs 4,224 crore.
The proposed merger between Sony Pictures Networks India and Zee Entertainment had been terminated in January 2024 after both parties failed to reach an agreement on the transaction, including differences over the leadership of the combined entity. Following the collapse of the deal, Zee had undertaken cost-rationalisation measures, including workforce reductions.
Earlier this month, Zee’s board had approved a proposal to raise at least Rs 2,300 crore in one or more tranches to support strategic and business initiatives and strengthen its balance sheet. The company has stated that the board will further evaluate the fundraising options.
The fundraising plans have come as Zee has expanded its content portfolio and rebuilt its sports business. Earlier this year, the company had secured the media rights for FIFA competitions in the Indian subcontinent, marking its return to sports broadcasting after exiting the segment through the sale of Ten Sports to Sony nearly a decade ago.
Zee had also cancelled the unutilised portion of its proposed $239 million foreign currency convertible bond (FCCB) programme, amounting to $215.1 million, after investors cited geopolitical developments and changes in capital allocation priorities. The company had redeemed the remaining outstanding FCCBs worth $23.9 million.
According to DPIIT data, FDI into India’s information and broadcasting sector has increased 30.2% year-on-year to Rs 7,824 crore in FY26 from Rs 6,007.81 crore in FY25. Quarterly inflows, however, have remained largely stable, with FDI during the January–March quarter easing marginally to Rs 1,213 crore from Rs 1,222 crore in the corresponding quarter of the previous year. The increase in annual inflows has largely been driven by Prime Focus, which attracted Rs 5,233.33 crore during FY26, accounting for nearly two-thirds of the sector’s total FDI.
