Zee Entertainment Share Price: Zee Entertainment Rebounds 6% After Bulk Over-The-Counter Deal
US investment firm Invesco Developing Markets Fund was seeking to dump 52.93 million shares (5.23 crore shares), or about 5.51% stake, in the major media company, which is destined for a merger with Sony Pictures Network (SPN).
Invesco holds a 10.2% stake in ZEEL with more than half of its stake in the range of Rs 250-263.7 each, totaling Rs 1,395.9 crore at the upper end of the range.
However, the floor price was set around 0.6% to 5.2% off its previous close. Shares of Zee Entertainment settled at Rs 265.4 on BSE on Monday.
According to ET NOW, 5.25 crore shares of Zee Entertainment shares traded hands in a bulk trade on Tuesday, signaling that the bulk deal had taken place. However, ETMarkets.com could not independently confirm the same.
#MarketAlert | 5.25 cr Zee Ent shares change hands in block deal #ZeeEnt #MarketsWithETNOW https://t.co/a8gjHxOPqN
— AND NOW (@ETNOWlive) 1666063497000
Following the update, shares of Zee Entertainment soared more than 6% to Rs 279.75, before trading at Rs 273.70 as of 9:50 am.
The shares, held by OFI Global China Fund and other funds managed by Invesco’s developing markets equity investment team, sold off on the stock exchange, according to reports.
The national brokerage Kotak Securities acts as a sole broker for the secondary sale of shares with a transaction size of 52,935,068 shares.
In April, Invesco had sold 74.3 million shares of ZEE, representing a 7.74% stake in the company, at an average price of Rs 281.46 per share for Rs 2,092 crore via wholesale transactions.
In March, Invesco withdrew its request to remove chief executive and managing director Punit Goenka from ZEE’s board and reiterated its support for the company’s proposed merger with Sony Pictures Networks India, ending months of legal standoff between the fund and the media company. .
Global brokerage CLSA has a buy rating on ZEEL with a target price of Rs 316, while domestic brokerage
initiated a hedge on ZEEL with a buy rating and a target price of Rs 370.
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