Management control key trigger for Zee Entertainment; stock gains over 12%

The stock of Zee Entertainment gained over 12 per cent on Thursday to touch the Rs 345-level. This followed the announcement of a stake sale to the tune of 16.5 per cent by its promoters on Wednesday. After the transaction, the promoter holding will reduce to 5 per cent. 

While 1 per cent of the promoters’ holding will still be pledged, analysts believe issues related to promoter debt will come to an end. The risk for investors was the worry that part of the pledged shares could be sold in the market, thus depressing share prices.

If the sale price gets close