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Zee Entertainment tumbles on buzz promoters restrained from selling unpledged shares

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Zee Entertainment Enterprises fell 7.40% to Rs 310.50 on media reports that an arbitrator asked the company's promoters to not sell any unpledged shares.

According to media reports, a Delhi High Court-appointed arbitrator asked Essel Group chairman Subhash Chandra not to sell his unpledged stake in Zee Entertainment Enterprises (ZEE) till next month in an ongoing dispute with Indiabulls Housing Finance over default in repayment of loans worth Rs 200 crore.

Essel Group has certain claims against Indiabulls Housing Finance and likewise Indiabulls Housing Finance also has certain claims against Essel Group, reports suggested.

Reports added that promoters of the Essel Group, which owns ZEE, had entered into an agreement with mutual funds, getting time till 30 September to repay debt. This agreement prevented the funds from selling the shares held as collateral.

According to recent media reports, Essel Group has repaid around 45-60% of its outstanding debt to the mutual fund houses. The mutual fund industry reportedly had a total exposure of over Rs 5,000 crore to Essel Group. Last month, the group had raised Rs 4,224 crore by selling an 11% stake in Zee Entertainment to global fund Invesco Oppenheimer.

Meanwhile, the S&P BSE Sensex was down 479 points or 1.31% to 36085.38.

On the BSE, 52 lakh shares were traded in the counter so far compared with average daily volumes of 44 lakh shares in the past one quarter. The stock hit a high of Rs 336 and a low of Rs 306.55 so far during the day.

The stock hit a 52-week high of Rs 506.1 on 17 Dec 2018. The stock hit a 52-week low of Rs 288.95 on 25 Jan 2019.

The stock had underperformed the market over the past one month, down 3.66% compared with 2.24% fall in the Sensex. The scrip outperformed the market in past one quarter, down 1.31% as against Sensex's 6.36% fall. The scrip had also underperformed the market in past one year, down 27.61% as against Sensex's 1.95% fall.

On a consolidated basis, Zee Entertainment Enterprises' net profit was up 62.6% to Rs 530.57 crore on a 13.3% increase in net sales to Rs 2,008.12 crore in Q1 June 2019 over Q1 June 2018.

Zee Entertainment Enterprises is a media & entertainment powerhouse offering entertainment content to diverse audiences.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, September 19 2019. 15:11 IST