Zee Entertainment shares rose 25% in early trading today after the media company announced its merger with Sony Pictures Networks India (SPNI).
Zee Entertainment stock rose 24.98% to Rs 319.5 from the previous close of Rs 255.65 on BSE. The company’s total shares of 0.96 lakh changed hands, representing a turnover of Rs 2.74 crore.
Zee Entertainment’s market capitalization reached Rs 29,161 crore. The stock hit a 52-week low at Rs 166.80 on August 23, 2021 on BSE.
The title opened with a gain of 9.99% to Rs 281.20. Zee Entertainment stock is trading above 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. During the afternoon session, the stock hit a new 52-week high at Rs 355.4, up 39.02% on BSE.
Later it closed at 31.86% or Rs 81.45 higher at Rs 337.10 on BSE.
The stock has gained 71.12% in one year and is up 50.12% since the start of this year. In one month, the action of large caps gained 97.71%.
Punit Goenka will become the Managing Director and CEO of the merged entity. The shareholders of SPNI will hold the majority of the capital of the merged entity. They will inject growth capital into SPNI as part of the merger so that SPNI has $ 1.5 billion at closing to pursue other growth opportunities.
Santosh Meena, Head of Research at Swastika Investmart, said: “The stock is trading at very attractive valuations and it is one of the strongest and preferred stocks for FIIs in the media space and if this deal comes through, so we might see a strong revaluation in the counter.
Technically, it is witnessing a break in the formation of declining channels and manages to exceed its very important moving averages, where Rs 300 is an immediate and psychological obstacle; above that it is likely to be heading towards the Rs 350 mark. In contrast, Rs 250 has become a solid support. “