Zee Entertainment Enterprises’s board has approved a fundraise of up to Rs. 20 billion ($239.6 million), the Indian broadcaster said yesterday.

The company had two major deals — a $10 billion merger with Sony India and a $1.4 billion cricket broadcasting deal with Walt Disney — fail this year, and was forced to cut costs and reduce losses in its business to meet key profit targets.

Zee said it will use the funds to “enhance its strategic flexibility to pursue future growth opportunities in the evolving media landscape”, a Reuters report Bengaluru.

The company plans to raise the funds through equity shares or any other eligible securities, via a combination of private placements, qualified institutions placements, and preferential issues, it added.

Amid the fallout of the deals and legal battles, Zee also contends with new competition after Reliance and Disney’s merge their Indian media assets, creating an $8.5 billion behemoth.

Meanwhile, on the Zee decision yesterday, analyst Karan Taurani from Elara Securities said the fundraising could be through a preferential allotment to promoters or by raising money via QIP and either way this will “boost investor confidence”, which has been low since the merger with Sony was called off.

“The total fundraising amount is up to Rs. 20 billion, which is about 14 percent of the current market cap, though we don’t expect the entire amount to be raised. We expect that the cash infusion could lead to i) improved investor confidence and sentiment, and ii) business expansion and investments, given the increased competitive intensity in the sector following the RIL-Disney merger,” Taurani added.