Share of Zee Entertainment Enterprises zoomed to a fresh 52-week high today a day after big bull Rakesh Jhunjhunwala bought 50 lakh shares of the firm for Rs 110.22 crore. The bulk deal on NSE occurred on a day when the stock closed 40% higher at Rs 261.50 against the previous close of Rs 186.80 on BSE. Market capitalisation of the firm rose to Rs 25,117.49 crore.
The rise in share came after two institutional investors sought removal of company's MD and CEO Punit Goenka, a move which analysts said would lead to improved standards of corporate governance in the firm.
The move may have prompted Jhunjhunwala's investment company Rare Enterprises to buy stock of the firm yesterday at Rs 220.44 per equity share.
Apart from Jhunjhunwala, Bank of America Securities Europe SA also bought 48.7 lakh shares at Rs 236.2 apiece in a bulk deal worth nearly Rs 115 crore.
The share rose another 13% intra day today boosted by interest from Jhunjhunwala and Bank of America Securities.
Zee Entertainment Enterprises share has gained 52.52% in the last 4 days. The stock touched an intraday high of Rs 295.15, rising 12.87% today.
Zee Entertainment share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. In one year, the share has gained 24.56% and risen 21.16% since the beginning of this year.
At 11:16 am today, market cap of the firm rose to Rs 26,053 crore on BSE.
Total 44.63 lakh shares of the firm changed hands amounting to turnover of Rs 123.97 crore on BSE.
The share opened higher at Rs 263.80 today against previous close of Rs 261.50 on BSE.
Two institutional investors -- Invesco Developing Markets Fund and OFI Global China Fund IIC -- that collectively hold around 17.88 per cent stake in Zee Entertainment have sought the removal of MD Punit Goenka and two others as the directors of the company, the firm said yesterday.
The company has other well-known investors such as Vanguard, HSBC, Schroder, Invesco, Government Pension Fund and City of New York Group Trust, among others.
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