The action of Zee Entertainment slips 14% on an investment of Rs 522 crore in the technology sector
Shares of Zee Entertainment Enterprises Ltd (ZEEL) were Nifty’s biggest losers, falling more than 14% at the start of Monday’s trading. The drop in the share price comes after the mainstream media announced an investment worth Rs.522 crore in its technology subsidiary Margo Networks.
Margo Networks, in which ZEEL owns 80%, offers streaming and advertising services under the “SugarBox” brand.
ZEEL shares fell 2% at the opening bell and then fell 14.44% to the intraday low of Rs 128.3 on BSE. This was against the last closing value of Rs 149.95. However, Zee Entertainment Enterprises’ share price rose 5.56% in one week, has fallen 28% in the past month and 55% since the start of the year.
Zee Entertainment Enterprises shares are trading above 5-day moving averages but below 20, 50, 100, and 200-day moving averages. SugarBox, which operates in the content delivery network (CDN) and telecommunications industry, is expected to close FY20 with revenue of Rs 47 lakh, ZEEL said and added that the additional investment will be used. for operational and financial support.
SugarBox is a related party of the company, the file says, adding that the acquisition cost and nature of the consideration, percentage of ownership, control acquired or number of shares acquired have not yet been finalized.
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