The midcap stock fell 4 percent to its intraday low of Rs 266 per share from the previous close of Rs 277.60 after the company asked to extend its merger deadline with Sony.
According to Zee Entertainment Enterprises Limited‘s filing, the company has requested that Bangla Entertainment Private Limited (BEPL) and Culver Max Entertainment Private Limited (CMEPL), formerly known as Sony Pictures Networks India Private Limited, extend the merger deadline.
Zee Entertainment wants to extend its merger deadline with Sony India due to disagreements over who will be CEO. Zee wants their CEO, Punit Goenka, but Sony is worried because he’s under investigation. This comes after Zee lost two independent directors and their stock price dropped.
In December 2021, a merger agreement was signed by Sony and Zee Entertainment Enterprises Limited. The transaction was expected to be completed in 8 to 10 months, but it has yet to be completed two years later due to the cases filed by financial institutions against Zee Entertainment Enterprises Limited and the Sebi order against Punit Goenka.
Looking at their financials the company’s net revenue increased by 20 percent year over year, from Rs 2,024 crore in Q2FY23 to Rs 2,438 crore in Q2FY24. Their revenue rose by 22 percent sequentially from Rs 1,984 crore in Q1FY24 to the current levels.
In addition, the company’s net profit rose by 8.8 percent year over year, from Rs 113 crores in Q2FY23 to a net profit of Rs 123 crores in Q2FY24. Their profit climbed from a net loss of Rs 53 crore in Q1FY24 to the current levels on a sequential basis, a 33 percent increase.
ZEEL has a market capitalization of Rs 26,006 crores and the share price has risen by 47 percent in the last six months and 12 percent in the year to date.
The promoter of the company owns 4 percent of the company, the general public owns 18.8 percent of the company, foreign institutional investors own 35 percent of the company, and domestic institutional investors own 42.2 percent.
Zee Entertainment Enterprises’ main businesses are broadcasting satellite television channels, selling space to other satellite television channels, and selling media content such as programs, film rights, feeds, and music rights.
Written by Sriram KV
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