Rakesh Jhunjhunwala, BofA pick stakes in Zee Entertainment; Stock stays in a frenzy buying, rises 58% so far this week

Zee Entertainment Enterprises (ZEEL) extended its buying frenzy even on Wednesday after ace investor Rakesh Jhunjhunwala and BofA Securities Europe picked some stakes in the company in a bulk deal. Investors are also upbeat about the company over takeover hopes. The company’s two directors have resigned, while the fate of Punit Goenka looks gloomy forward in the company. At the 39th annual general meeting (AGM), the company’s shareholders passed all the resolutions.

At around 10.55 am, ZEEL is trading at Rs271.40 per piece up 3.8% on Sensex. The stock has hit a new 52-week high of Rs295.15 per piece in the early deals.

The stock has been on a gaining spree since Monday where it closed at Rs186.8 per piece.

So far this week, ZEEL stock has skyrocketed by over 58% on Sensex.

In a bulk deal on NSE, Jhunjhunwala’s Rare Enterprises purchased 5 million shares of ZEEL at Rs220.4 per piece on Tuesday. The stock had gained about 40% on this day.

Furthermore, BofA Securities Europe bought 4.86 million shares at Rs236.2 per piece of the company on NSE.

Currently, the company is in a board room tussle where two major shareholders Invesco Developing Markets Fund and OFI China Fund called for an extraordinary general meeting for the removal of members including CEO Punit Goenka. These shareholders recommended six new members for the board.

On Monday, Ashok Kurien and Manish Chokhani resigned from the position of Non-Executive Non-Independent Directors of the Company with immediate effect. The two directors resigned after shareholders like Invesco Developing Markets Fund (formerly Invesco Oppenheimer Developing Markets Fund) and OFI Global China Fund LLC demanded the removal of three directors of the company.

Apart from Kurien and Chokhani, the two mentioned shareholders have also demanded the removal of the company’s managing director and chief executive Punit Goenka as director. On the other hand, the two shareholders recommended the appointment of six directors. These are – Rohan Dhamija, Arun Sharma, Srinivasa Rao Addepalli, Gaurav Mehta, Surendra Singh Sirohi and Naina Krishna Murthy.

In the AGM on Tuesday, shareholders of the company voted for six resolutions that involved the adoption of financial statements as of March 31, 2021, dividends on preference shares and ordinary shares. Further, the ratification of payments to the cost auditor among others was also passed. However, the re-appointment of Kurian and Chokani was not considered as they already have resigned from their post.

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( With inputs from indiainfoline)