ZEEL shares down over 7 pc after Subhash Chandra's resignation

Shares of Zee Entertainment Enterprises on Tuesday plunged over 7 per cent after Subhash Chandra resigned as chairman of his flagship company.

On the BSE, the stock opened at Rs 340.50 and lost 6.97 per cent to close at Rs 319.70. Intra-day, it had plunged 9.06 per cent to a low of Rs 312.50.

In early trade, the stock traded 9.13 per cent lower at Rs 312.40. Later on, it gained some momentum to settle 7.34 per cent down at Rs 318.55 on the NSE.

In terms of shares traded, on the BSE, spurt in volume was more than 1.24 times as compared to the last trading session. Over 30.38 lakh shares were traded on the BSE, while six crore shares changed hands on the NSE.

The company's market capitalisation was eroded by over Rs 2,300 crore to Rs 30,706.65 crore.

Media mogul Subhash Chandra on Monday resigned as chairman of his flagship company Zee Entertainment Enterprises Ltd (ZEEL), with immediate effect.

Chandra will remain the non-executive director of the company, which he founded in 1992, it added.

"The board accepted his resignation and noted that this is in line with the requirements of Regulation 17(IB) of SEBI Listing Regulations, which mandates that the chairperson of the board shall not be related to the managing director or the chief executive officer of the company," the firm said.

His resignation comes at a time when debt-ridden Essel Group is looking to further divest promoters' stake in the company to repay debts.