Shares of Zee Entertainment Enterprises (ZEE) continued their upward journey after ace investor Rakesh Jhunjhunwala’s Rare Enterprises Ltd and BofA Securities Europe SA bought shares of the company worth over Rs 225 crore through open market transactions on Tuesday.
The stock surged 10 per cent to hit a fresh 52-week high of Rs 287.70 on the NSE in intra-day trades on Wednesday. The stock of the broadcasting & cable TV operator was trading at its highest level since January 2020. It trades in the futures & option (F&O) segment, which has no circuit limits.
On Tuesday, September 14, 2021, Rare Enterprises bought 5 million equity shares of Zee Entertainment at Rs 220.44 per share through bulk deal transactions on NSE. BofA Securities Europe SA, meanwhile, purchased 4.86 million shares at an average price of Rs 236.2 apiece, the NSE bulk deal data shows. The names of the sellers were not ascertained immediately.
In the past two trading days, the market price of Zee Entertainment has zoomed 54 per cent after Invesco Developing Markets Fund and OFI Global China Fund LLc, which own a combined 17.88 per cent of the company, called for an extraordinary shareholders’ meeting to remove Punit Goenka (promoter) as director. They also called for the removal of two non-executive directors Manish Chokhani and Ashok Kurien, who resigned on Monday. Additionally, they have sought appointment of six independent directors on the board.
However, the chairman of Zee Entertainment, R Gopalan, made no mention of the resignation of two directors, Ashok Kurien and Manish Chokhani, at the annual general meeting (AGM) of shareholders held in Mumbai on Tuesday or on the allegations of corporate governance lapses by the proxy advisory firms.
The AGM did not discuss the notice sent by its largest shareholder, seeking an extraordinary general meeting (EGM) of shareholders to remove the current Managing Director (MD) and Chief Executive Officer, Punit Goenka, the Business Standard reported. CLICK HERE FOR FULL REPORT