On Tuesday, media stocks saw a buying frenzy, with Nifty Media, the NSE's sectoral measure, soaring the highest, up 11 percent. At 1:25 PM, the Nifty Media index was up 11.2 percent at 1,918.60. The index has gained about 16% year-to-date (YTD).
Invesco, Zee Entertainment's largest stakeholder, and OFI Global China Fund have called for the removal of the company's managing director Punit Goenka, citing a growing rift between the fund and the company's founders.
Zee Entertainment's Annual General Meeting (AGM) will be conducted today, September 14, 2021, at 4.30 pm through video conferencing or other audio-visual means.
The company's non-executive non-independent directors, Manish Chokhani and Ashok Kurien have also resigned with immediate effect. In a regulatory filing, the company informed the stock exchanges of this. According to the company, Ashok Kurien left due to his preoccupation, while Manish Chokhani resigned due to altered living circumstances and viewpoint after COVID.
Due to the news, Zee Entertainment's shares jumped over 24% to Rs 232.15 on Tuesday, before trading down to Rs 225.85 at 10:10 am. In the previous trading session, the stock had closed at Rs 186.80.
Some of the Zee Group's companies, such as Zee Learn, rose 17 percent to Rs 15.17 per share. At the same moment, the BSE Sensex was up 183.32 points, or 0.32 percent.
Dish TV and Zee Media Corporation (ZMCL) shares were both locked at their upper circuit limits. Dish TV increased 10% to Rs 21.31, while ZMCL increased 5% to Rs 10.44.
Observing the current situation ICICI Securities said in a note, “While we await the actual outcome of the meet, with promoters group holding only around 4 percent stake, it is likely that this resolution will go through. This move is likely to remove a promoter-led overhang on the stock, owing to past instances of inefficient allocation of capital, related party transaction, etc”.