Zee Entertainment Enterprises witnessed a decline of 6.66 percent in its share prices on Friday, May 12 due to a potential setback in its merger with Sony Pictures Networks India.
The National Stock Exchange and Bombay Stock Exchange informed the National Company Law Tribunal that they were directed by the Securities and Exchange Board of India to submit a SEBI order issued on April 25 as part of the record, which could potentially affect the proposed merger.
During Friday’s trade, the stock opened at a price of Rs. 184.95 per share against the previous close of Rs. 192.10 and dipped further during the early trading session to touch an intraday low of Rs. 179.30 per share.
Itwas trading at ₹185.10, down by 3.64 percent at 11:35 a.m. on the NSE.
The stock touched a 52-week-high of Rs. 287 on October 06, 2022 and a 52-week-low of Rs. 176.55 on February 23, 2023, indicating that at the current level, the stock is trading just 4 percent above its 52-week low and 35.5 percent below its 52 week high.
The stock has declined by over 12 percent in the last one month. Moreover, it has given a negative return of nearly 29 percent in the past six months. Furthermore, the stock has dropped almost 67 percent in the last five years.
According to reports, the National Company Law Tribunal (NCLT) has been informed by stock exchanges that the promoters of Shirpur Gold Refinery, a company under Essel Group, have purportedly diverted company assets for their own benefit.
The notification came after the Securities and Exchange Board of India (SEBI) issued an interim order and a show cause notice against the refiner, citing violations of various regulatory provisions.
The stock exchanges have reportedly informed the company law tribunal that they may need to review their approvals for the proposed Sony-Zee merger in light of Sebi's instructions following its order against Essel Group's entity.
In April, the Securities and Exchange Board of India (SEBI) had issued an interim order against Shirpur Gold Refinery Limited (SGRL), along with its former chairman Amit Goenka, promoter Jayneer Infrapower and Multiventures, and five others for allegedly diverting funds from the company and violating other regulations.
The refinery is a subsidiary of the Essel Group led by Subhash Chandra Goenka, and its lenders have taken it to the National Company Law Tribunal (NCLT) under the Insolvency and Bankruptcy Code (IBC).
Zee Entertainment Enterprises Limited is an India-based company, which is engaged in the business of media and entertainment. It is involved in the business of broadcasting of general entertainment television channels, such as non-news and current affairs television.
According to a MintGenie poll, an average of 21 analysts have a ‘BUY’ call on the stock.