Zee Entertainment (Zee), saw cash volume of 6.50 cr shares yesterday, with stock making 52 week high, having closed at 40% higher. OI in September series Futures is having 8.80 cr shares, large portion of which may also get marked for delivery on expiry. Hence, such a large portion of quantity, can only be released by some FIIs or OCBs. Infact, 2 directors Ashok Kurien and Manish Chokhani having resigned, with Punit Goenka, asked to resign, indicates change of ownership at the company. Infact, one Business Channel in the morning, saw it a negative development, as they have loyalty to Manish Chokhani, having resigned.
Zee has paid up equity of Rs. 96 cr, with FV of Re.1. FIIs, OCBs and Inst. Investors, with few HNIs are holding 87% stake, with promoter holding 4% and about 9% is held by the retail and other category of shareholders. Invesco Oppenheimer, holding about 18% stake in the company, has moved a requisition to remove 3 directors (2 having resigned), as also, to appoint 6 independent directors, which will raise Board strength to 12 directors, all as Non Executive & Independent Directors.
Institutional investors have been holding 87% stake for last 1 year, in which, they have cleaned the books, as also, brought back the company on track. Infact, they tolerated 4 independent directors, each having drawn Rs.55 lakh in FY 21 from the company, as sitting fees and commission and were seen working for the interests of the old promoter. Even, Manish Chokhani was shown as Independent Director in FY21 Annual Reports, while in their resignation on 13h September, he was shown as Non Independent director. Disclosure norms seen having gone for a toss, in case of the company.
Need to see, who is coming in as new Promoter (rule out RIL), which will vastly re-rate the stock.
We will not hint on the name, as “Hum Bolega To Bolege Ke Bolta Hai” :)
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