On Tuesday the share price of the media and entertainment company recovered around 5 percent from its intraday low of Rs 642 per share after the company gave clarification on terminating USD10 billion merger.
With a market capitalization of Rs 24,613.31 crore, the shares of Zee Entertainment Enterprises Ltd closed at Rs 256.25 per share, decreasing around 6.78 percent as compared to the previous closing price of Rs 277.45 per share.
According to the Economic Times, Sony Group Corp was close to calling off the proposed $10 billion merger of its India businesses with Zee Entertainment Enterprises Ltd (ZEEL), which was initially announced two years ago to become India’s largest broadcaster.
According to the company filing, during the second half of the trading session, Zee Entertainment Enterprises Ltd clarified the business deal with Sony Group by stating that the article published by the Economic Times is groundless and factually incorrect and that the company is committed to the merger with Sony and is working to successfully close the proposed merger.
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. During the same time frame, net profit increased by 8 percent from Rs 113 crore to Rs 123 crore.
India offers one of the most fascinating media ecosystems in the world, with a massive, developing market brimming with activity, change, and innovation. There is a significant runway for expansion, with the market predicted to increase at a 10 percent CAGR to Rs 2.83 trillion ($35.4 billion) by 2025.
The promoter owns 4 percent of the firm, while the general public owns 18.8 percent, foreign institutional investors hold 35 percent, and domestic institutional investors control 42.2 percent.
Zee Entertainment Enterprises specializes in satellite television channel broadcasting, space selling for other satellite television channels, and media content sales, such as programs, film rights, feeds, and song rights.
Written by:- Abhishek Singh
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