Shares of Zee Entertainment Enterprises Limited stood at Rs 170 on August 23, 2021. It rose to Rs 355.40 today, translating into gains of 109 per cent during the period.
The stock has gained 51 per cent since the beginning of this year. It opened 10 per cent higher at Rs 281.20 against the previous close of Rs 255.65 on BSE. Shares of Zee Entertainment Enterprises Limited rose 39 per cent to hit a new 52-week high of Rs 355.40 on BSE after the media firm announced its merger with Sony Pictures Networks India (SPNI).
The board of directors at Zee Entertainment Enterprises has given its in-principle approval for the merger between Sony Pictures Networks India (SPNI) and Zee Entertainment Enterprises Limited (ZEEL).
The shares stand higher than 5 day, 10 day, 20 day, 50 day, 100 day, and 200-day moving averages. Market cap of the firm rose to Rs 32,378.98 crore on BSE.
The deal will see both the companies combining their linear networks, digital assets, production operations and programme libraries. As part of the deal, ZEEL and SPNI will conduct mutual diligence and finalise definitive agreements during an exclusive period of 90 days.
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.
According to MarketsMojo, the company has a low Debt to Equity ratio (avg) at -0.15 times. The stock is trading at a discount compared to its average historical valuations and with a ROE of 8.6, it has a Fair valuation with a 2.4 Price to Book Value. Also, it has high institutional holdings at 76.08%.
Big bull Rakesh Jhunjhunwala bought 50 lakh shares of the company in a bulk deal worth Rs 110.22 crore. He bought the shares at Rs 220.4, his stake value in Zee Entertainment Enterprises Limited has surged more than 50% in the last one week so far.
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 final transaction will be subject to customary due diligence and execution of definitive agreements and required corporate, regulatory and third-party approvals, including the votes of ZEEL's shareholders. The merged entity will be a publicly listed company in India.
Copyright©2023 Living Media India Limited. For reprint rights: Syndications Today