Zee Entertainment shares jump 14% today; here's why

Shares of Zee Entertainment Enterprises Ltd (ZEEL) surged 14.26 per cent to hit a day high value of Rs 154.65 in Tuesday's trade. Today's sharp rise in the share price came after the media firm settled merger termination disputes with Sony Pictures.

"ZEEL, Culver Max Entertainment Pvt Ltd (CMEPL) operating as Sony Pictures Networks India (SPNI), together with its group company Bangla Entertainment Pvt Ltd (BEPL), have arrived at a comprehensive non-cash settlement, amicably resolving all disputes related to the Merger Co-operation Agreement and the Composite Scheme of Arrangement," it stated in a release.

"As part of the settlement, the companies have mutually agreed to withdraw all respective claims against each other, in the ongoing arbitration at the Singapore International Arbitration Centre, and all related legal proceedings initiated in the National Company Law Tribunal (NCLT) and other forums. The companies will also withdraw the respective Composite Schemes of Arrangement from the NCLT and inform the relevant regulatory authorities," ZEEL added.

The counter saw high trading volume today as around 55.71 lakh shares were last seen changing hands. The figure was higher than the two-week average volume of 5.87 lakh shares. Turnover on the stock came at Rs 82.40 crore, commanding a market capitalisation (m-cap) of Rs 14,470.23 crore.

The scrip traded higher than the 5-day, 10-, 20-, 30-, 50-day and 100-day simple moving averages (SMAs) but lower than the 150-day and 200-day SMAs. The stock's 14-day relative strength index (RSI) came at 62.74. A level below 30 is defined as oversold while a value above 70 is considered overbought.

As per BSE, the company's stock has a price-to-equity (P/E) ratio of 30.36 against a price-to-book (P/B) value of 1.30. Earnings per share (EPS) stood at 4.46 with a return on equity (RoE) of 4.28.

As of June 2024, promoters held a 3.99 per cent stake in the firm.