ZEE shares tanked 14% today amid heavy selling. Here are 2 reasons

Shares of ZEE Entertainment Enterprises Ltd took a beating, falling nearly 14 per cent in Wednesday's trade, as the media firm denied any talks with Sony group on merger revival and as reports suggested that about Rs 2,000 crore ($241 million) may have been diverted from ZEE, Sebi investigators suspected, which is about ten times more than initially estimated by the market regulator.

Following the two developments, ZEE shares fell 14.22  per cent to hit a low of Rs 165.55 on BSE. Against buy orders of 3,65,120 shares, the stock had sell orders for 5,46,849 shares. A total of 570 crore worth ZEE shares had exchanged hands on NSE within the first 20 minutes of trade. With the Wednesday's selling, the stock is down 40 per cent in 2024 so far.

Calling the Sony merger revival report as factually incorrect, ZEE said it was not aware of any information that has not been announced to the stock exchanges, which could explain the movement in its shares that soared 8 per cent on Tuesdayv

In the second development, a Bloomberg report suggested that the amount Sebi has found is not final and may change after Sebi reviews the responses from the ZEE executives. Sebi, it said, has been calling in senior officials at ZEE including Punit Goenka, his father Subhash Chandra, and some board members to explain their stance.

Also read: Stock recommendations by analysts for February 21: Gujarat Alkalies, PNB and SBI Life

Also read: BPCL, HPCL, IOC: Which OMC stock is better placed? Emkay shares pecking order, target prices