Zee Entertainment climbs 5% as lenders extend timeline for Essel Group

Zee Entertainment (ZEEL) shares rose as much as 5% to Rs 293.30 per share on BSE after Zee promoters met lenders for an extension of the September 30 deadline for the repayment of debt.

Following the latest developments, ZEEL stock opened at a gain of 3.5% at Rs 289.30 against the last closing price of Rs 289.30 on BSE. Later the ZEEL stock price rose 5.01% to touch the intraday high of Rs 293.30.

The volume traded has already crossed yesterday's total volume. However, the stock trades lower than its 5, 20, 50, 100 and 200-day moving averages.

"The mentioned extension of the timeline was requested purely in the interest deriving the true value of the precious assets of the group," it said in a statement on September 25.

"The lenders have extended complete support to the Group and its promoters, recognising the intrinsic value of the assets and the overall asset divestment process are undertaken. The Group remains confident on further divestments including its non-media assets," Essel Group spokesperson said on Wednesday.

Zee Entertainment had entered a standstill agreement with its lenders to extend repayment deadline to September 30. The deadline falls under the standstill agreement entered in January 2019.

By Rupa Burman Roy

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