Mumbai: Shares of Zee Entertainment (ZEEL) declined for the sixth straight session to close at Rs 272.10 down 9.63% on September 23, 2019. The stock cracked following reports that one of the lenders--mostly Kotak MF-- has sold a part of the company’s pledged shares in the open market. The stock has hit a five year low of Rs 268.55 in an otherwise strong bull market. So far investors have lost market wealth of Rs 9,840 crore in Zee Entertainment this month.
In the past three day, this stock of Essel Group company has slipped 19% to trade at its lowest levels since August 14, 2014, on reports that promoter Subhash Chandra was asked by a court to not sell his unpledged stake in the company till next month. The Essel Group had reached an agreement in January under which the lenders had agreed not to sell the company’s shares pledged with them till September 30 and gave Essel Group time to find a buyer for a portion of Chandra’s stake.
Essel Group, the owners of ZEEL, is facing a debt of over Rs 11,000 crore. The group is working to offload promoters stake on further divestments, which also include its non-media assets, reported PTI. According to media reports, Chairman of Essel Group, Subhash Chandra met Finance Minister Nirmala Sitharaman on September 23.
