Zee Entertainment Enterprises rose 3.77% to Rs 275.40 at 9:18 IST on BSE after the Reserve Bank of India allowed foreign institutional investors to purchase up to 100% of the paid-up capital of the company.
Meanwhile, the BSE Sensex was up 69.69 points, or 0.28%, to 24,754.54.
On BSE, so far 1.06 lakh shares were traded in the counter, compared with an average volume of 3 lakh shares in the past one quarter.
The stock hit a high of Rs 282.70 and a low of Rs 274.85 so far during the day. The stock hit a 52-week high of Rs 301.90 on 21 May 2014. The stock hit a 52-week low of Rs 208.10 on 28 August 2013.
The stock had underperformed the market over the past one month till 2 June 2014, falling 1.25% compared with 10.18% rise in the Sensex. The scrip had also underperformed the market in past one quarter, falling 1.14% as against Sensex's 16.88% rise.
The large-cap company has an equity capital of Rs 96.04 crore. Face value per share is Re 1.
The Reserve Bank of India (RBI) on Monday, 2 June 2014, said that foreign institutional investors (FIIs) can now invest up to 100% of the paid up capital of Zee Entertainment Enterprises under the Portfolio Investment Scheme, which is higher than the earlier ceiling of 49%. Zee Entertainment Enterprises has passed resolutions at its Board of Directors' level and a special resolution by the shareholders, agreeing for enhancing the limit for the purchase of its equity shares and convertible debentures by FIIs. This approval is given subject to the condition that the onus of compliance with FDI policy and FEMA regulations, including downstream investment would continue to remain on Zee Entertainment Enterprises, the Reserve Bank of India said in a press release.
On a consolidated basis, Zee Entertainment Enterprises' net profit rose 21.1% to Rs 217.58 crore on 20.2% increase in net sales to Rs 1158.81 crore in Q4 March 2014 over Q4 March 2013.
Zee Entertainment Enterprises is one of India's leading television, media and entertainment companies. It is amongst the largest producers and aggregators of Hindi programming in the world, with an extensive library housing over 1.2 lakh+ hours of television content. With rights to more than 3,500 movie titles from foremost studios and of iconic film stars, ZEEL houses the world's largest Hindi film library.
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