Ace investor Rakesh Jhunjhunwala through its investment arm Rare Enterprises has picked up nearly 50 lakh shares in Zee Entertainment Enterprises Ltd for ₹110.22 crore in a block deal, according to NSE data.
Rare Enterprises buys 50 lakh shares, or 0.52%, stake in the firm at Rs220.44 a share amid news of boardroom battle. According to NSE block deal data, Bofa Securities Europe SA also bought 48.65 lakh shares at Rs236.20 a share valued at Rs115 crore.
On Monday, shares of Zee Entertainment Enterprises Ltd saw a record jump of nearly 40% after its investors sought the removal of three directors, including the firm’s chief executive officer.
The surge came after Invesco Developing Markets Fund and OFI Global China Fund LLC, which togather hold around 17.9% stake in the company, called for an extraordinary general meeting of shareholders to remove Punit Goenka, Manish Chokhani and Ashok Kurien from the board. Chokhani and Kurien resigned with immediate effect.
The other Subhash Chandra group firms also skyrocketed. Zee Learn Ltd climbed 20%, SITI Networks 3.2% and Zee Media Corp Ltd 4.5%. MT Educare climbed 10% while Dish TV India rose 10%.
“Corporate governance was the biggest roadblock for Zee Ltd where the recent development of EGM for removal of directors and its promoters is changing sentiments for the group. Zee has a big brand and network along with strong operations where the only concern was management”, said Santosh Meena, Head of Research, Swastika Investmart.
Analyst says that the stock is trading at very attractive valuations and it is one of the strongest and FIIs favorite stocks in the media space. If there will any change in promoter then we may see a big rerating in the counter as we have seen earlier in CG Power, analyst added.
“Zee has already rallied today but I believe we may see a big upside from here if there will be any change in management, therefore, aggressive investors can bet on this stock but I would suggest avoiding other group companies as there are concerns of poor performance”, Meena added.
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