ZEEL shares in focus as board to consider buyback, interim dividend on Nov 12

Shares of Zee Entertainment Enterprises Ltd (ZEEL) are in focus on Monday as the board of directors of the company are scheduled to meet on Thursday, November 12, to examine and discuss the views and concerns expressed by investors in relation to the recent decline in the market price of the equity shares of the company.

The board, ZEEL said, would consider appropriate measures for reinforcing investor confidence and enhancing long-term shareholder value. In this context, ZEEL said its board will consider various measures in the interests of the company and its shareholders, including a proposal for buyback of fully paid-up equity shares of the company, payment of interim dividend or any other measure that will meet the objectives set forth hereinabove, in accordance with applicable laws.

"The proposal is subject to consideration and approval by the board, and no decision has been taken in this regard as on the date of this intimation. The outcome of the board meeting will be communicated to the stock exchanges in accordance with applicable law," ZEEL said.

In accordance with the SEBI (Prohibition of Insider Trading) Regulations, 2015 and the company’s Code of Conduct, ZEEL said the trading window for dealing in the securities of the company shall remain closed for the designated persons and their immediate relatives until 48 hours after the disclosure of the outcome of the aforesaid Board Meeting.

ZEEL recently reported stronger-than-expected Q2 revenue, driven by FIFA-led subscriptions, but its margins missed on elevated content and new-initiative spending. ZEEL's management reported 35–40 per cent retention of FIFA-acquired ZEE5 subscribers, underpinning H2FY27 digital growth, although subscription growth should moderate compared to Q2FY27’s growth rate, JM Financial said in a receny note.

"Returns on new initiatives, content and marketing investments are key to watch. We have cut FY27E–28E EPS by 3 per cent to 27 per cent, largely due margin estimates cut. We continue to value ZEEL at 11x FY28E EPS; maintain REDUCE," it said on October 31.