Shares of ZEE Entertainment Ltd climbed 3 per cent in Monday's trade amid reports the media firm has paid all IndusInd Bank dues on June 30. As per reports, ZEE Entertainment and IndusInd Bank have announce settlement, with NCLAT disposing off the IndusInd Bank's insolvency plea. There was no such confirmation by ZEE Entertainment on stock exchanges regarding the same at the time of publishing this report.
In a knee-jerk reaction, shares of ZEE Entertainment climbed 3 per cent to hit a high of Rs 182.70 on BSE. Later the stock was trading 2.5 per cent higher at Rs 181.80.
In March, ZEE Entertainment and IndusInd Bank said they have mutually entered into the settlement agreement on such agreed terms by which all disputes and claims have been settled between the company and IndusInd Bank, ZEEL, adding that no penalty was paid and there was no material impact of the development on the financial position of the company.
IndusInd Bank had approached the NCLT in February, seeking to start insolvency proceedings against ZEEL.
In a June 28 note, JM Financial said Sony-Zee merger is critical for ZEE Entertainment but it is no less for Sony.
"With 7 per cent TV viewership – the least among major broadcasters – Sony’s market positioning is hardly envious. What makes it precarious is India’s shifting media landscape. Pay-TV households (HHs) appear to have peaked. TV viewership is trending down as digital consumption chips away at TV time. Urban HHs, Sony’s core TG, are taking to OTT/CTV in droves. Sony LIV, Sony’s OTT platform, has built a strong subscription base, but faces an uphill road ahead. JioCinema, with free IPL streaming and accelerated build-out of local and global content, threaten to upend the OTT pecking order. Besides, Sony LIV still has white spaces, especially around regional content,," it noted.
JM Financial said that ZEE Entertainment compliments Sony’s portfolio perfectly, both on linear and OTT side. Together, merge-co will have the highest TV viewership share, one of the largest content libraries, access to global IPs and world class tech. Concerns on corporate governance will be put to rest with Sony nominated board taking over, it noted.
"With Puneet indicating that his legal status will not come in the way of merger (here), we believe Sony should not let this opportunity go," it said.
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