Shares of Zee Entertainment Enterprises Ltd (ZEEL) were the top losers on Nifty, dropping over 14% in Monday's early trade. The fall in share price comes after the media major announced investment worth Rs 522 crore in its tech subsidiary Margo Networks.
Margo Networks, in which ZEEL owns 80% stake, offers streaming and advertising services under the 'SugarBox' brand name.
Shares of ZEEL dropped 2% at the opening bell and later fell 14.44% to the intraday low of Rs 128.3 on BSE. This was against the last closing value of Rs 149.95. However, the stock price of Zee Entertainment Enterprises has risen 5.56% in one week, it has fallen 28% in the last one month and 55% year-to-date.
Zee Entertainment Enterprises' shares trade higher than 5-day moving averages but lower than 20, 50, 100 and 200-day moving averages. SugarBox, that operates in the content delivery network (CDN) and telecommunications industry is expected to close FY20 with a turnover of Rs 47 lakh, ZEEL said and added that the additional investment will be used for operational and financial support.
SugarBox is a related party of the company, said the filing, adding that the cost of the acquisition and nature of consideration, percentage of shareholding, control acquired or the number of shares acquired is yet to be finalised.
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