Zee Entertainment slips for sixth straight day, loses 10% to hit a 5-yr low

Shares of Zee Entertainment Enterprises (ZEEL) slipped for the sixth straight day on Monday. The stock hit a five-year low of Rs 269, down 10 per cent in the intra-day deal in an otherwise strong market. It was trading at its lowest level since August 14, 2014 on the BSE. In comparison, the S&P BSE Sensex and Nifty 50 indices were up 3 per cent each.

The counter witnessed huge trading volumes with a combined 26.6 million equity shares, representing 3 per cent of total equity of ZEE, changing hands on the NSE and BSE till the time of writing of this report. 

In the past three days, the stock of Essel Group Company has plunged 19 per cent on reports that promoter Subhash Chandra was asked by a court to not sell his unpledged stake in the company till next month.

Thus far in September, ZEEL's share price has plunged 27 per cent, as compared to a five per cent rise in the S&P BSE Sensex. Investors have lost market wealth of Rs 9,840 crore in ZEEL so far in the month.

The Essel Group, which owns ZEEL, had reached an agreement in January under which the lenders agreed not to sell the company’s shares pledged with them till September 30 and gave Essel time to find a buyer for a portion of Chandra’s stake.

There were concerns after reports suggested that an order restraining Essel Group Chairman Subhash Chandra from selling his shares could impact the group’s future monetisation plans in ZEEL. CLICK HERE TO READ FULL REPORT