Subhash Chandra, chairman of Zee Telefilms and promoter of the Essel Group of Companies, and other promoters of the company have sold 12,375,000 Zee Telefilms shares, accounting for about 3 per cent of the equity capital of the company, to foreign institutional investors.

The shares were part of the promoters' personal holding in the company. Proceeds from the sale will be used to clear dues owed by the promoters to Zee and Essel Propack Ltd, an Essel group release said.

The total value of the deal is estimated to be around Rs 150 crore (Rs 1.5 billion), sources said. However, the figure could not be confirmed.

The dues owed by the promoters to Zee were advances outstanding from Buddha Films Pvt Ltd, the group's sports marketing venture.

"Zee Telefilms will receive the remaining dues owed to it," Chandra said. "In my interaction with shareholders, I have made a commitment to repay dues owed to Buddha Films at the earliest," he added.

As of March 31, 2003, the promoters holding in Zee stood at 51.78 per cent. However, after the three per cent sale, the holding has now dropped to 48.78 per cent.