Shares of Zee Entertainment Enterprises fell 2.57% to Rs 193.65, extending losses for fifth consecutive session.
The stock has lost 10.05% in five sessions, from its recent closing high of Rs 215.25 recorded on 17 February 2023.
On the technical front, the stock's daily RSI (relative strength index) stood at 22.196. The RSI oscillates between zero and 100. Traditionally, the RSI is considered overbought when above 70 and oversold when below 30.
On daily chart, the stock is trading below its 50-day, 100-day and 200-day simple moving average (SMA) placed at 227.65, 245.81 and 243.87, respectively.
In the past six months, the stock has fallen by 25.01% while the benchmark Sensex has gained 0.94% during the same period.
In an exchange filing made late on Wednesday, the Essel Group-owned media company informed that in the petition filed by IndusInd Bank against the company under the Insolvency & Bankruptcy Code, 2016, the National Company Law Tribunal, Mumbai Bench (NCLT), has pronounced its order dated 22nd February, 2023 admitting the company to corporate insolvency resolution process under the provisions of the Bankruptcy Code.
As per media reports, IndusInd Bank has claimed a default amount of Rs 83.08 crore or $10.04 million against the media company. Zee is reportedly a party to the debt service reserve account (DSRA) guarantee agreement entered into with the private bank for the term-loan facility advanced to another Essel Group firm, Siti Networks.
Reports suggest that NCLT has appointed Sanjay Kumar Jhalani as the interim resolution professional.
As per latest media reports, the company has moved the National Company Law Appellate Tribunal (NCLAT) seeking relief in the bankruptcy court's order that permitted initiating of insolvency proceedings against the media firm. This is an attempt to save the earlier proposed merger with Culver Max Entertainment (CME) as insolvency laws prohibit any transaction till bankruptcy cases are settled, the reports added.
Zee Entertainment Enterprises (ZEEL) is a media & entertainment company offering entertainment content to diverse audiences. It is present across broadcasting, movies, music, digital, live entertainment, and theatre businesses, both within India and overseas.
The company's consolidated net profit slumped 91.9% to Rs 24.31 crore in Q3 FY23 as against Rs 298.73 crore recorded in Q3 FY22. Revenue from operations declined marginally to Rs 2,111.18 crore in quarter ended 31 December 2022 from Rs 2,112.64 crore posted in the same period a year ago.
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