Zee Entertainment share price: Shares of Zee Entertainment Enterprises (ZEEL) fell sharply on Monday, August 31, amid continued selling pressure following the National Company Law Tribunal’s (NCLT) approval of a repayment plan for Zee Group founder Subhash Chandra in his personal insolvency case.
ZEEL shares declined more than 14 per cent during intraday trading, hitting a low of Rs 86.90, compared with the previous close of around Rs 101.51. The fall translates into a decline of around Rs 14.61 per share, or 14.4 per cent, from the previous close.
Around midday, the stock was trading near Rs 93.63, down around 7.8 per cent from the previous close. The stock has now declined for four consecutive sessions, falling around 17 per cent during the four-session period.
The selling pressure comes after the NCLT approved Subhash Chandra’s repayment plan under his personal insolvency proceedings.
Under the approved plan, Rs 6.25 crore will be paid to creditors, while Rs 25 lakh has been earmarked towards process costs. This is against admitted creditor claims of around Rs 22,006 crore.
The approval effectively represents a 99.97 per cent haircut on the admitted creditor claims.
The sharp fall in ZEEL shares comes as investors assess the implications of the NCLT order and the large gap between the admitted claims and the amount proposed to be paid under the repayment plan.
Zee Entertainment share price: Key numbers
ZEEL shares closed at around Rs 101.51 in the previous session before coming under pressure on Monday.
The stock touched an intraday low of Rs 86.90, marking a fall of Rs 14.61 per share from the previous close. In percentage terms, the stock was down 14.4 per cent at the intraday low.
Around midday, ZEEL shares were trading near Rs 93.63, reflecting a decline of about 7.8 per cent from the previous close.
The stock’s decline on Monday also extends its recent losing streak. ZEEL shares have fallen for four consecutive sessions and are down around 17 per cent over the four-session period.
The latest decline comes amid continued focus on the NCLT proceedings involving Subhash Chandra and the repayment plan approved by the tribunal.
What the NCLT order means
The repayment plan approved by the NCLT provides a payment of Rs 6.25 crore to creditors and Rs 25 lakh towards process costs, against admitted claims of approximately Rs 22,006 crore.
The difference between the admitted claims and the amount provided under the plan results in an effective haircut of 99.97 per cent.
While the NCLT order concerns Chandra’s personal insolvency proceedings, the development has weighed ZEEL shares, with the stock extending its decline to a fourth consecutive session.
For ZEEL investors, the key numbers from Monday’s trading session were the Rs 86.90 intraday low, the 14.4 per cent fall from the previous close, and the stock’s approximately 17 per cent decline over four sessions.
Zee Entertainment share price
- Previous close: Rs 101.51
- Intraday low: Rs 86.90
- Fall from previous close: Rs 14.61
- Percentage fall at intraday low: 14.4 per cent
- Price around midday: Rs 93.63
- Fall at Rs 93.63: 7.8 per cent
- Four-session decline: Around 17 per cent
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money-related decisions.)
