Shares of Zee Entertainment rose 25% in early trade today after the media firm announced its merger with Sony Pictures Networks India (SPNI).
Zee Entertainment share zoomed 24.98% to Rs 319.5 against previous close of Rs 255.65 on BSE. Total 0.96 lakh shares of the firm changed hands amounting to turnover of Rs 2.74 crore.
Market cap of Zee Entertainment rose to Rs 29,161 crore. The stock hit 52-week low of Rs 166.80 on August 23, 2021 on BSE.
The stock opened with a gain of 9.99% at Rs 281.20. Zee Entertainment share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. In afternoon session, the stock hit a fresh 52 week high of Rs 355.4, rising 39.02% on BSE.
Later, it closed 31.86% or Rs 81.45 higher at Rs 337.10 on BSE.
The share has gained 71.12% in one year and risen 50.12% since the beginning of this year. In a month, the large cap stock has gained 97.71%.
Punit Goenka will become the Managing Director and CEO of the merged entity. SPNI shareholders will hold majority stake in the merged entity. They will infuse growth capital into SPNI as part of the merger so that SPNI has $1.5 billion at the closing for pursuing other growth opportunities.
Santosh Meena, Head of Research, Swastika Investmart said, " The stock is trading at very attractive valuations and it is one of the strongest and FIIs favourite stocks in the media space and if this deal concludes, then we may see a big rerating in the counter.
Technically, it is witnessing a breakout of falling channel formation and manages to move above its all-important moving averages where Rs 300 is an immediate and psychological hurdle; above this, it is likely to head towards Rs 350 mark. On the downside, Rs 250 has become a strong support."
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