Zee Entertainment slips 7% to hit 52-week low amid heavy volumes

Shares of Zee Entertainment Enterprises (ZEEL) slipped 7 per cent to hit a 52-week low of Rs 172.85 in Tuesday’s intra-day trade amid heavy volumes.

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The stock of TV broadcasting & software production company fell below its previous low of Rs 175.80, touched on May 26, 2023. It quoted lowest level since September 2021.

At 02:49 pm; ZEEL traded 6 per cent lower at Rs 173.65, as compared to 0.01 per cent rise in the S&P BSE Sensex. The average trading volumes on the counter jumped over three-fold. A combined 31.21 million equity shares changed hands on the NSE and BSE.
 
Market regulator, Securities Exchange Board of India (Sebi), on June 12, barred Essel Group chairman Subhash Chandra Goenka and his son Punit Goenka, Managing Director and Chief Executive Officer (MD and CEO) of ZEEL, from holding any directorship or key managerial positions in any listed company in an interim order. The order followed an investigation which found the two had abused their board positions in Zee by "siphoning off" funds for their own benefit.

The development could delay Zee's proposed merger with Sony Pictures Networks India (SPNI), said analysts. Furthermore, Sebi order also means Goenka may not be able to hold a senior role in the Zee-Sony merged entity.

Meanwhile, dubbing the interim order by Sebi “unwarranted and unjustified”, legal representatives for ZEEL MD & CEO Punit Goenka argued that the regulator had reached a conclusion without giving him an hearing opportunity.

The Securities Appellate Tribunal (SAT) will continue to hear the appeal against Sebi’s interim order on June 26. The hearing in the National Company Law Tribunal (NCLT) on the merger between Zee and Sony Pictures Network India, too, is scheduled for the same day. Legal experts, however, said that the NCLT hearing could get deferred further. CLICK HERE FOR FULL REPORT