Shares of Zee Entertainment Enterprises Ltd on Thursday rallied 20 per cent to hit their fresh 52-week high level of Rs 290.50. Today's sharp upward move came after the National Company Law Tribunal (NCLT) approved the proposed merger of Zee Entertainment Enterprises Ltd with Sony India. The stock eventually settled 17.95 per cent higher at Rs 285.55. The NCLT had initially reserved its verdict on the merger between Zee Entertainment Enterprises and Culver Max Entertainment (previously known as Sony Pictures Networks India) on July 10.
The NCLT decision is a key regulatory approval for the mega merger, aimed at creating a $10-billion media giant, which was announced in 2021 but has been delayed for multiple reasons.
The merger triggered worries after the Securities and Exchange Board of India (capital market regulato Sebi) banned Zee Entertainment's CEO Puneet Goenka from the boardrooms of listed companies for a year. He had been lined up to be the merged entity's managing director and CEO.
Zee and Sony last year offered concessions such as pricing discounts to help ease regulatory concerns and received antitrust approval for the merger.
On the technical setup, the stock today traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-, and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) came at 81.23. A level below 30 is defined as oversold while a value above 70 is considered overbought. The company's stock has a negative price-to-equity (P/E) ratio of 234.56 against a price-to-book (P/B) value of 2.33.
The scrip has an average target price of Rs 242, Trendlyne data showed, suggesting a potential downside of 14 per cent. It has a one-year beta of 1.16, indicating high volatility.
Around 63.42 lakh shares changed hands today on BSE, over seven times higher than the two-week average volume of 8.34 lakh shares. Turnover on the counter stood at Rs 170.45 crore, commanding a market capitalisation (m-cap) of Rs 27,427.63 crore.
Meanwhile, Indian equity benchmarks fell sharply today, dragged by bank, financial, consumer, pharma, auto and technology stocks. The 30-share BSE Sensex pack tanked 308 points or 0.47 per cent to close at 65,688; while the broader NSE Nifty index moved 89 points or 0.46 per cent down to settle at 19,543.
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