Zee Entertainment Enterprises rose 8.36% to Rs 346.05 at 11:19 IST on BSE, following the company issuing a clarification on Sunday, 27 January 2019.
Meanwhile, the S&P BSE Sensex was down 286.14 points, or 0.79% to 35,739.40.On the BSE, 81.99 lakh shares were traded in the counter so far compared with average daily volumes of 8.54 lakh shares in the past two weeks. The stock had hit a high of Rs 367.25 and a low of Rs 319.60 so far during the day. The stock hit a 52-week high of Rs 619 on 29 January 2018. The stock hit a 52-week low of Rs 288.95 on 25 January 2019.
With reference to news appearing in the media quoting, "A link has emerged between Essel Group and a company being probed for suspect demonetisation deposits", Zee Entertainment Enterprises clarified on Sunday, 27 January 2019, that Zee has no connection whatsoever with any alleged transactions contained in the article published by the media.
With regard to the allegation of involvement of other Essel Group entities contained in the report, upon verification with other Essel group entities, the Essel Group had already confirmed that Nityank Infrapower and Multiventures is an independent company and does not belong to Essel Group. Queries relating to demonetisation, if any from SFIO were directed to Nityank. Information/documents relating to certain transactions were sought by Serious Fraud Investigation Office (SFIO) - the investigating agency in July/August 2018 from certain Essel Group entities and requisite information/documents were provided. In view of above, since all sought by SFIO has been provided by Essel Group entities and no further information has been subsequently sought, the matter stands closed for Essel Group entities.
Media reports alleging involvement of Essel Group entities in the SFIO investigation against Nityank is being done only with malicious intent and legal action as advised/appropriate are being initiated in this regard, the company added.
Essel Group founder and chairman Subhash Chandra, in an open letter, reportedly alleged that certain negative forces were trying to hamper the promoters' stake sale in entertainment network Zee Entertainment Enterprises (ZEEL). Chandra reportedly said that he would be able to repay the entire dues of the Essel Group only after he sells his stake in ZEEL.
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As of 31 December 2018, Zee Entertainment Enterprises promoters owned 41.62% in the company of which 59.37% are pledged with lenders.
Zee Entertainment Enterprises' consolidated net profit rose 50.56% to Rs 562.76 crore on 17.88% increase in net sales to Rs 2,166.77 crore in Q3 December 2018 over Q3 December 2018.
Zee Entertainment Enterprises is one of India's leading media and entertainment companies.
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