Zee Entertainment shares fall over 3% after Invesco moves NCLT

Zee Entertainment shares slipped over 3% today after the company's shareholder Invesco moved the National Company Law Tribunal (NCLT) against the Punit Goenka-led firm for not announcing the date for an extraordinary general meeting (EGM).

Invesco has been calling for an extraordinary general meeting to replace the media firm's board and oust its chief executive and managing director Punit Goenka.

Also read: In no mood to give up battle, Invesco lists reasons why it dragged Zee to NCLT

Stock of Zee Entertainment lost up to 3.14% to an intraday low of Rs 300.05 against previous close of Rs 309.80 on BSE. Market cap of the firm stood at Rs 29,382 crore.

Zee Entertainment shares are trading higher than 20 day, 50 day, 100 day and 200 day moving averages but lower than 5 day moving averages.

The large cap stock has gained 46.15% in one year and risen 36.76% since the beginning of this year.

Total 8.09 lakh shares amounting to turnover of Rs 24.68 crore changed hands on BSE.

Invesco reiterated its demand for an extraordinary general meeting on September 23.

That was the second time Invesco called for an EGM seeking removal of Managing Director Punit Goenka and two directors of the company, Manish Chokhani and Ashok Kurien.

Also read: Zee Entertainment calls Invesco's NCLT move 'impulsive or premature'

On September 12, Invesco Developing Markets Fund and OFI Global China Fund IIC, who hold 17.88 per cent stake in the company had made the demand for first time.

Following the letter, Manish Chokhani and Ashok Kurien had resigned from the position of non-executive non-independent directors of the company with immediate effect.

Invesco and OFI Global hold 7,43,18,476 equity shares and 9,73,50,000 equity shares, respectively, representing 17.88% of the paid-up share capital of the company that carries the right of voting.

These two investors, via the September 12 letter, had called for an extraordinary general meeting (EGM) of the company shareholders to pass the three ordinary resolutions.

The second letter was written after the media giant announced a merger with Sony Pictures Networks India last week.

Invesco and OFI Global China Fund LLC have said that the Sony-Zee merger deal was struck in an 'erratic manner'.

"A newly constituted board supported with the strength of independence will be best suited to evaluate and oversee the potential for strategic transactions," stated Aroon Balani, vice president of Invesco in his September 23 letter, as mentioned in a report in Bloomberg.