Zee Leisure jumps as much as 19% on promoter stake sale, pares achieve later

ZEEL’s promoter Essel Group on Wednesday after market hours had stated it was planning to promote 16.5 per cent stake in broadcasting & cable TV operator to monetary traders.

“The Essel Group seeks to promote as much as 16.5 per cent stake in ZEEL to monetary traders, in an effort to repay mortgage obligations to sure lenders of the Group for whose profit such shares are presently encumbered (and who’ve consented to such share sale by the Group),” the corporate stated in a regulatory submitting.

Out of the aforesaid, the Group seeks to promote 2.3 per cent stake in ZEEL to OFI World China Fund, LLC and/or its associates, it added.

Put up transaction total holdings of the Group in ZEEL can be 5 per cent, out of which encumbered holdings of the Group will scale back to 1.1 per cent of ZEEL, it added.

The Group can be working actively on additional divestments together with its medial non-media belongings and stays assured to finish the identical.

This improvement reaffirms the Group’s optimistic progress on its total asset divestment strategy, undertaken to generate enough liquidity for the compensation course of, the corporate stated.

Overseas brokerage agency Morgan Stanley upgraded ZEEL’s ranking to ‘Equal-weight’ from ‘Beneath-weight’.

“Up to now few months, heightened inventory volatility could possibly be largely attributed to sale of pledged shares and uncertainty with respect to sale of remaining pledged shares. With promoters now promoting a 16.5 per cent stake (round 74 per cent of their present stake), a big portion of the promoter debt situation could possibly be resolved. This reduces threat of pledged inventory coming to the market, so we decrease our bear case likelihood,” the brokerage agency stated in a observe.

“With the promoter stake anticipated to be right down to round 5 per cent, traders will begin monitoring the monetary and operational efficiency of the enterprise within the new incarnation (in comparison with promoters holding a 42 per cent stake a 12 months again). The main target will shift in the direction of progress in conventional enterprise (promoting and subscription) and efficiency in ZEE5 with respect to investments, monetization,and market standing relative to the competitors (international in addition to home),” it stated.

At 09:27 am, the inventory trimmed a few of its early morning achieve and was buying and selling 8.5 per cent greater at Rs 333 on the NSE . Compared, the Nifty 50 index was down marginally by 0.06 per cent at 11,992 factors.

Shares of Dish TV India have been buying and selling 3 per cent decrease at Rs 16.35 on the NSE. The inventory rallied 16 per cent to Rs 19.50 in early morning commerce.

Supply hyperlink