Zee shares fall over 9% as stake sale process heightens

NEW DELHI: Shares of Zee Entertainment Enterprises closed over 9 per cent lower in trade on Wednesday, even as the Essel Group claimed that the stake sale process of Zee Entertainment was at an advanced stage.

Shares of Zee Entertainment closed 9.72 per cent down at Rs 333.30 on BSE.

In response to an ET query seeking comment on market speculation, an Essel group spokesperson said, “The stake sale process of Zee Entertainment Enterprises is in steady progress and at an advanced stage. Any additional details cannot be shared at this stage due to confidentiality agreements. Essel Group does not comment on any market rumours or speculations.”


Yet the stock extended its recent correction.

Zee Entertainment Enterprises had announced in November last year that its promoters, led by Subhash Chandra, planned to sell up to 50 per cent of their equity stake in the company to a strategic partner.

Shares of the company have been in the bearish territory since last Thursday, 2 May, 2019.

Meanwhile, shareholding data showed Zee group is among the firms that lead in share pledges with lenders.

As per a PTI report, Zee Entertainment and Dish TV, the companies from the Subhash Chandra-led Essel group, have their promoter pledging 66.2 per cent and 94.6 per cent of the ownership pledged, respectively.

From the companies that make the 50-share benchmark Nifty, Zee Entertainment leads with the highest pledge at 66.2 percent

Promoters typically raise money for their other businesses by pledging a part of their holdings in listed entities as security.