Today the stock of Zee Entertainment is the most discussed in the stock market. There was such news about Zee Entertainment that the company’s stock registered a rise of 40 percent today. This is the biggest jump in a single day in the history of the company. After today’s boom, it is being discussed everywhere.
Taking advantage of the opportunity, the country’s veteran investor Rakesh Jhunjhunwala has bought 50 lakh shares of this company. Rakesh Jhunjhunwala’s company Rare Enterprises has bought 50 lakh shares of Zee Entertainment Limited at a price of Rs 220.44 per share. Apart from this, Bank of America Merrill Lynch Europe SA has also bought 48 lakh 65 thousand 513 shares of the company at a price of Rs 236.20 per share.
There is chaos in the board of Zee Entertainment
There is chaos in the boardroom of ZEEL at the moment. Two big shareholders of the company want changes in the current board of the company. These shareholders have proposed to show the way to the Managing Director and Chief Executive Officer Puneet Goenka from the board.
This stock was open at 205
The stock of Zee Entertainment closed at Rs 186 on Monday. When the market opened today, this stock opened at Rs 205 level and reached the level of Rs 270.70 during trading. Eventually it closed at Rs 261.55. Rakesh Jhunjhunwala has bought 50 lakh shares in it at the level of Rs 220.
ZEEL has been a favorite of foreign investors
Stock market experts say that the fundamentals of this stock are looking strong, as there will be improvement in corporate governance within the company. In terms of valuation, the stock is currently undervalued. In such a situation, the benefit of improvement in business and sentiment will be visible. Santosh Meena of Swastik Investments said that it is a big brand and preferred stock in the media space for FIIs. If there is a change in the promoters, then there will be a tremendous improvement in its rating.
Corporate governance will improve
Likhitha Chepa of Capital Via Global Research says that the appointment of new independent directors will significantly improve corporate governance. Experts say that this stock will easily reach the level of 300-350. There was a barrier at 260 level which the stock has crossed. There is a strong support at 205 on the lower side. On technical grounds, experts advise to wait for the correction and invest in this stock at the right level for the long term.
Important meeting of AGM held today
Here, an extraordinary annual general meeting of the company was held on Tuesday regarding the ongoing dispute between the stakeholders and the board. Before this meeting, two independent directors of the company Manish Chokhani and Ashok Kurian resigned. Both the investors have also appealed to CEO Puneet Goenka to step down from the board, as well as propose the appointment of 6 new independent directors. Invesco Developing Markets Fund (formerly Invesco Open Heimer Developing Markets Fund) and OFI Global China Fund LLC hold 17.88 per cent stake in Zee Entertainment.
This big deal was done in July 2019
Subhash Chandra-led Essel Group had in July 2019 inducted existing investors Invesco Open Heimer to increase its stake in Zee Entertainment Enterprises by another 11 per cent for which an investment of Rs 4,224 crore was made. As of June 2021, the promoters’ stake in the company was 3.99 per cent.
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