Zee Shares Slump 10% At Open As Problems Keep On Mounting

  • Benzinga India
  • Stock Market News
Zee Shares Slump 10% At Open As Problems Keep On Mounting
Credit: © Reuters.

Benzinga - Zee‘s share price was back in the red on Wednesday morning as the media giant’s problems seemed never-ending.

What Happened: The Securities and Exchange Board of India (SEBI), the country’s market regulator, has recently uncovered a significant financial irregularity within the accounts of Zee Entertainment (NS: ZEE ) Enterprises. According to a Bloomberg report, this discrepancy amounts to over $240 million, equivalent to approximately ₹2,000 crore. This revelation adds to the challenges facing the embattled media company, coming on the heels of the collapse of its proposed merger with Sony Group‘s Indian unit just a month earlier.

SEBI’s investigation into Zee’s founders has shed light on the redirection of funds totalling around ₹2,000 crores ($241 million) from the company. Notably, this amount surpasses initial estimates by SEBI investigators by nearly tenfold, indicating the magnitude of the financial discrepancy uncovered.

Earlier on Monday several reports had indicated that Zee and Sony were in discussions to revive the merger agreement, which had faltered previously due to disagreements between the two media giants. The reports suggested that representatives from both companies had been convening in Mumbai, with efforts intensifying over the past two weeks to salvage the deal. However, Zee’s latest statement contradicts these reports, denying any involvement in negotiations to revive the agreement.

Zee Entertainment Enterprises (ZEE) issued a statement on Tuesday refuting claims of engaging in negotiations with Sony to revive the collapsed $10 billion media merger deal. In a clarification addressed to the stock exchanges, Zee emphasised that reports suggesting its involvement in talks with Sony to resurrect the deal were “factually incorrect.”

Price Action: ZEEL share price was down 9.99% to trade at ₹173.40 as the markets opened on Wednesday.

Read Next: How To Check Thai Casting IPO Allotment Status

Read the original article on Benzinga

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
  • Kanwal Malhotra @Kanwal Malhotra
    Looking to the various channels Zee is broadcasting including WION, the news seems to the work of some whistle blower and no business man would like to spoil the reputation of its company. Just look at the channels and the programmes Zee is broadcasting and I don’t think there is any issue with the revenues from Advertisements.
    Like 0
    • Meenraj ramaiah @Meenraj ramaiah
      @Kanwal Malhotra it seems that Promotirs Group have started to accumulate the Shares at throw away price.The price may touch 250/= after the declaration of the results for the year ending 31 st March 2024.
      Like 0
    • Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

      Error: File type not supported

      Drop an image here or

      100

Related Articles