ZEEL shares plunge 10 pct amid concerns over stake sale by its promoters

Shares of Zee Entertainment Enterprises Ltd (ZEEL) plunged 10 per cent Wednesday amid concerns over stake sale by its promoters. The scrip tumbled 9.72 per cent to close at Rs 333.30 on the BSE. During the day, it dived 12.66 per cent to Rs 322.45.

On the NSE, shares plunged 10.05 per cent to close at Rs 332.05. In terms of traded volume, 30.75 lakh shares were traded on the BSE, while over 6 crore shares were traded on the NSE during the day. "The Subhash Chandra led Zee Entertainment Limited fell today for the fifth day in a row as speculations are ripe that the stake sale process is undergoing some hindrance. But the panic bitten stock is in no mood to turnaround despite the company's clarification that the process is at an advanced stage and making steady progress," Umesh Mehta, head of research, Samco Securities Ltd said. In five days, the scrip has tumbled 22.89 per cent on the BSE.

Meanwhile, ZEEL Wednesday said its board will consider standalone and consolidated results for fiscal 2018-19 on May 27, scotching "market rumours" that raised concerns about audit of the company's financial statements. The company said, in a regulatory filing, it has been informed that "there are certain rumours floating in the market raising concerns about audit of the financial statements of the company for the fiscal year ended March 31, 2019."

"We deny the above rumours floating in the market relating to audit of the financial statements of the company," it said. In a separate filing, the company said it was not in a position to provide any comment or clarification regarding the stake sale process by its promoters, Essel Group. On Tuesday, promoters of Essel Group had said its stake sale process in ZEEL is at an advanced stage. Last year in November, the promoters had stated that they planned to divest up to 50 per cent of their stake in ZEEL to a strategic partner.

"Understandably, in accordance with the said intent, the promoters have been in discussions or negotiations with various prospective investors and the company is not in a position to provide any comment or clarification until such time any potential investor is identified and such arrangement is disclosed by the promoters to the board of directors of the company," ZEEL said in the filing.

(With inputs from agencies.)