Shares of Zee Entertainment Enterprises Ltd recovered from the session's intraday low of ₹198.20 on Friday. The stock ended 0.3% lower.
Friday's trading session saw a nearly 4% decline in the stock after the company claimed in an exchange filing that a media report by Bloomberg that stated it would repay IndusInd Bank $10 million to close the deal with Sony was 'speculative'.
Further, the company also mentioned that it has been exploring several strategies, including settlement, in relation to the ongoing dispute mentioned in the news report. However, there is no clarity at this stage as to which resolution or strategy the company will finally pursue, much less the timing of any such strategy.
In February, IndusInd Bank sought to begin insolvency proceedings against the company. This action could have threatened the merger by halting all transactions, including the transfer of assets.
The National Company Law Appellate Tribunal (NCLAT), by choosing to stay the proceedings, offered interim relief. The following meeting will take place on Wednesday, March 29.
On Thursday, Bloomberg in its report said that according to people familiar with the situation, the company has agreed to pay back debts owed to IndusInd Bank Ltd, as it attempts to end insolvency proceedings brought against it and move closer to completing a merger with a Sony Group unit to create a $10 billion media conglomerate.
Following the news report, shares of the company ended 9.3% higher at ₹206.55 on the BSE, on Thursday.
On the technical front, the stock on Friday hit an intraday low of ₹198.20 and high of ₹209.15. The stock has fallen 33.25% from its 52-week high of ₹308.7 on April 4, 2022.
The stock price fell 18.9% and underperformed its sector by 3.5% in the past year.
According to Rajesh Bhosale - Equity Technical and Derivative Analyst, Angel One, dips were being considered as buying opportunity; further upside can be expected in coming week with ₹220 as next resistance and ₹196 as support.
According to a MintGenie poll, 22 analysts on an average recommend 'strong buy' for the stock.
