The upside comes in Zee stock after it ended Wednesday s session 15% lower after Bloomberg reported that Sebi had found that about $241 million (Rs 2,000 crore) might have been diverted by the company promoters.
Zee Entertainment Enterprises shares plummeted due to a $241 million accounting issue and the failed merger with Sony. Sebi investigation into Zee founders revealed $241 million may have been diverted from the company, Bloomberg reported. Concerns over weak financials and corporate governance persist despite improved quarterly results.
Zee Entertainment shares rallied today after Tuesday s crash. Traders expect potential deals following Sony s termination of the proposed merger with Zee. Zee has refuted Sony s claims and plans to explore legal options. The stock has faced de-ratings and sell calls due to pending investigations and weak performance. Challenges include subdued advertising business and competition in the subscription and OTT markets. Analysts have downgraded the stock and slashed earnings estimates. Zee s valuation is expected to de-rate back to 12x PE.
At least five brokerages said investors should sell Zee Entertainment s stock as the Indian broadcaster s failed $10 billion merger deal with Sony India raised concerns about its survival in an increasingly competitive industry.