Media giant Zee Telefilms notched a record volume on the bourse today on expectations that the company may ink a deal with the global media major AOL Time Warner. The stock hit a new 52-week high of Rs 172.90 in intraday trades. The AOL Time Warner chief is currently on a visit to India.
On the Bombay Stock Exchange (BSE), Zee stock touched a 52-week high of Rs 172.90, but settled at Rs 171.15, up 8.70 per cent over Thursday's close. More than 1.39 crore shares changed hands through 53,850 trades. On the National Stock Exchange, 2.27 crore shares change hands through 100,146 trades.
Dealers said: "Expectations of some major development in the company is one of the major reasons for the sustained rise in the scrip." Of late, several brokerage houses have also upgraded the stock to a strong outperformer as the worst was over for the company. Moreover, Zee is on a recovery path led by non-Zee TV advertising revenues and strong subscription revenues.
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Zee, of late, has been on an acquisition spree, having acquired control over two media companies in the last few weeks. Recently, Zee acquired a 64 per cent stake in film production and TV software company Padmalaya Telefilms and music channel ETC Networks. Recently, the Zee group launched an online lottery under the company Playwin Infrawest and the results of the draw will be announced on Zee TV.
Zee has also announced restructuring plans, in which 11 out of its 23 subsidiaries would either be merged with itself or wound up. After this exercise, there would be 12 subsidiaries left under the umbrella of the media company. Analysts say the restructuring will help the company to have a clear and simple balance sheet, which will make it easier to conclude the proposed stake sale to a strategic partner.