 "Zee entertainment logo")
Shares of Zee Entertain Enterprises (ZEEL) continued to reel under selling pressure for a second day, falling another 4 per cent to Rs 155 on the BSE in Thursday's intraday trade amid heavy volumes.
The stock of the television broadcasting & software production company was trading close to its 52-week low of Rs 152.50 touched on January 23, 2024. The counter saw huge trading volumes with a combined 35.64 million equity shares changing hands on the NSE and BSE till 11:09 am.
In the past two trading days, the stock has tanked 10 per cent after the company’s board expanded the scope of an independent advisory panel to include investigation assessment.
The announcement by the company comes amid a probe by market regulator, Securities Exchange Board of India (Sebi), against its promoters for alleged fund diversion.
Last week, on February 23, the company announced formation of independent advisory panel to curb erosion of its investor wealth in the wake of speculations leading to negative public opinion of the company.
Since February 20, in the past seven trading days, the market price of ZEEL has slipped 20 per cent following reports that Sebi has found Rs 2,000 crore accounting and funds divergence issue at the company.
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ZEEL, however, has clarified that the news items and rumors pertaining to accounting issues in the company as incorrect, baseless and false.
Pursuant to the SAT order dated October 30, 2023 granting relief to the current Key Managerial Personnel (KMP) of the company, the company has been in the process of providing all the comments, information or explanation requested by Sebi, and has extended complete co-operation on all aspects, the company said in an exchange filing.
In this regard, the company is not aware of any order wherein Sebi has recorded any finding and therefore it has been falsely reported in news articles, ZEEL said. CLICK HERE FOR FULL DETAILS
Meanwhile, ZEEL also clarified that the company has not been involved in any negotiations, or any other event with Sony deal, and the company categorically confirm that the news item is factually incorrect. ZEEL had made clarification on news reports of the company’s attempt to revive the $10 billion Sony deal. CLICK HERE FOR FULL DETAILS
The Reliance-Disney blow
Reliance Industries and Viacom18 have signed a binding definitive agreement with Disney to create a joint venture (JV) that will combine their media operations in India. The deal would hurt other industry players like ZEEL, as they would have to compete with a much larger entity, according to Emkay Global Financial Services.
Reliance Industries and Viacom18 have signed a binding definitive agreement with Disney to create a joint venture (JV) that will combine their media operations in India. The deal would hurt other industry players like ZEEL, as they would have to compete with a much larger entity, according to Emkay Global Financial Services.
ZEEL, which has already been struggling since its merger breakdown with Sony, should be negatively impacted by the creation of a larger entity. Both content producers and advertisers are likely to gravitate towards the RIL-Disney entity, which will also cater to the largest set of audience, further weakening its overall competitive position.
"Jio’s marketing muscle would also make it more difficult for ZEEL to grow. This deal reinforces our negative view on ZEEL and leaves it with a lesser number of suitors, thus further lowering its bargaining power,! the brokerage firm said. It retains 'SELL' on ZEEL with an unchanged target price of Rs 165.
