New Delhi:
Shares of Zee Entertainment Enterprises (ZEE) rises by 6%, Rs 271 to Rs 280.05 on Tuesday’s intraday trade, after nearly 53 million shares of the company changed hands via block deals on the National Stock Exchange (NSE).
About 52.93 million shares, representing a 5.51% stake of ZEE, worth Rs 1,396 crore changed hands on the exchange for Rs 263.7 per share, data shows. The names of the buyers and sellers, however, have not ascertaining.
Invesco’s Markets Equity
The block deals came in the backdrop of reports that advised OFI Global China Fund and other funds handled by Invesco’s Developing Markets Equity investment team were looking to sell shares on the stock exchange today.
Invesco owns a 10.2% stake in the ZEE with more than half of its stake in the range of Rs 250-263.7 apiece, aggregating to Rs 1,395.9 crore at the upper limit of the range.
However, the floor price has been set at about 0.6% to 5.2% discount to its previous close. Shares of Zee Entertainment settled at Rs 265.4 on BSE.
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“This block deal will be the second one in seven months by Invesco after it offloaded a 7.8% stake in April for Rs 2,092 crore. The block deal in April had come after Invesco withdrew its demand for an extraordinary general meeting, which it was pursuing since September 2021.
It was doing this to reconstitute the board citing corporate governance issues,” the report said.
The brokerage expects ZEE Entertainment to report a 41% year-on-year (YoY) drop in profit after tax at Rs 159.41 crore compared with Rs 270.20 crore in the same quarter last year.
Sales have been falling 3.8% YoY to Rs 1,904.50 crore compared with Rs 1,978.80 crore in the year-ago quarter. Margin has been contracting 749 basis points to 13.3% from 20.8% YoY.
Earlier This Month:
The Competition Commission of India (CCI) granted conditional approval to the proposed merger of ZEE with Sony Pictures Networks (SPN) India. Last week, the company got shareholder’s approval for the merger.
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