The decline in ZEE shares by 14.22% to a low of Rs 165.55 on the Bombay Stock Exchange (BSE) reflects a significant downturn. This drop contributes to an overall decrease of 40% in the value of ZEE stock since the beginning of the year 2024.
ZEE Entertainment Enterprises Ltd experienced a significant drop of nearly 14% in its share price during Wednesday’s trading session for two primary reasons. Firstly, the company denied any ongoing discussions with the Sony group regarding a potential merger revival.
This news disappointed investors who may have been hopeful for positive developments in this area, leading to a negative impact on the stock price. Secondly, reports surfaced suggesting that approximately Rs 2,000 crore ($241 million) may have been diverted from ZEE, which was suspected by Sebi investigators. This amount is notably higher than the initial estimate provided by the market regulator.
Following the two developments, ZEE shares plummeted by 14.22% to reach a low of Rs 165.55 on the Bombay Stock Exchange (BSE). The imbalance between buy and sell orders further exacerbated the situation, with buy orders totaling 3,65,120 shares and sell orders amounting to 5,46,849 shares. This significant difference in orders highlights the prevailing selling pressure on the stock.
Additionally, trading volume on the National Stock Exchange (NSE) was notably high, with ZEE shares worth 570 crore being exchanged within the first 20 minutes of trade. As a result of Wednesday’s selling spree, the stock has witnessed a staggering 40% decline in value since the beginning of 2024.
ZEE Entertainment Enterprises Ltd responded to the report regarding the Sony merger revival, dismissing it as factually incorrect. The company stated that it was not aware of any undisclosed information that could explain the recent surge in its share price, which had risen by 8% on Tuesday.
Regarding the second development, a Bloomberg report suggested that the amount identified by Sebi regarding potential diversion of funds from ZEE is not final and may be subject to change following a review of responses from ZEE executives. Sebi has reportedly summoned senior officials from ZEE, including Punit Goenka, Subhash Chandra, and certain board members, to provide explanations regarding their stance on the matter.
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