Why Zee Entertainment shares fell 5% intraday

Zee Entertainment share price declined nearly 5 per cent in intraday trade on Tuesday after Delhi High Court rejected the company's plea seeking stay on IndusInd Bank's demand of Rs 83 crore. The Subhash Chandra-led company stock has declined 30 per cent over the last one year as against 8.5 per cent gain in NSE Nifty and nearly 14 per cent drop in the Nifty Media index.

The court has allowed private lender IndusInd Bank to raise the amount against Zee for Siti default.  

In a regulatory filing in October this year, Siti Networks, a part of Zee Group, had said that it defaulted on around Rs 400 crore loan against which Zee Entertainment has given corporate guarantee of around Rs 116 crore. The company had said that it was in discussions with its bankers for restructuring of its debt obligations.

Reacting to the news, shares of Zee Entertainment fell as much as 4.83 per cent to hit an intraday low of Rs 201.95 against the previous closing price of Rs 212.20. The stock opened higher at Rs 213.35 and touched an intraday high of Rs 216.45. Paring early losses, the stock was currently trading at Rs 212.35, up 0.07 per cent.

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On the National Stock Exchange, Zee Entertainment share price was  at Rs 213.60, up 0.45 per cent, against the previous closing price of Rs 212.65. During the day's trade so far, the stock hit an intraday high and low of Rs 216.90 and Rs 202, respectively.

The stock hit its 52-week high Rs 304.70 on 27 December, 2019, and 52-week low of Rs 114 on 25 March, 2020. Currently, the stock was trading 32 per cent below its 52-week high and 81.58 per cent above its 52-week low.

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Meanwhile, shares of Siti Networks were trading at Rs 1.13, down 1.74 per cent, against the previous closing price of Rs 1.15 on the BSE. In contrast, the BSE SENSEX was quoting at 45,944, up 390 points or 0.86 per cent.

By Chitranjan Kumar