Zee Media Corporation shares jump 10% to hit 52-week high. Here is why

Shares of Zee Media Corporation Ltd rose sharply in Friday's trade. The stock surged 10 per cent to hit a one-year high value of Rs 20.70. At this price, it has gained 48.92 per cent in the past one month.

Today's upmove in the share price came after the company's board approved a fundraising plan of up to Rs 200 crore. Zee Media's board, in an exchange filing, said it has approved issuance of "up to 13,33,33,333 Warrants, fully convertible or exchangeable for, one fully paid-up equity share of the Company ('Warrants') at an issue price of Rs 15 per Warrant, aggregating to an amount not exceeding Rs 200 crore, with the right to Warrant Holder(s) to apply for and be allotted 1 fully paid Equity Share of the face value of Re 1 each of the Company at Rs 15 per Equity Share (including premium of Rs 14 per Equity Share) for each Warrant, with the amount paid against each Warrant be adjusted against the issue price for the resultant Equity Share, within 18 months from the date of allotment of the Warrants."

"Further, an amount equivalent to 25 per cent of the Issue Price shall be payable at the time of subscription and allotment of Warrants, and the remaining 75 per cent of the Issue Price shall be payable on the exercise of options against each such Warrant within 18 months, in one or more tranches, from the date of allotment of the Warrants," it added.

In a separate development, Zee Media informed bourses that it would conduct an extraordinary general meeting on October 22, 2024.

Technically, the counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The scrip's 14-day relative strength index (RSI) came at 86.75. 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 negative price-to-equity (P/E) ratio of 14.66 against a price-to-book (P/B) value of 2.47. Earnings per share (EPS) stood at (-)1.28 with a return on equity (RoE) of (-)16.84.

The counter saw heavy trading volume today as around 86.58 lakh shares changed hands today on BSE at the time of writing this story. The figure was higher than the two-week average volume of 22.65 lakh shares. Turnover on the counter came at Rs 17.79 crore, commanding a market capitalisation (m-cap) of Rs 1,294.64 crore.

As of June 2024, promoters held a 0.42 per cent stake in the company.