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The share price of Zee Entertainment Enterprises Ltd (ZEEL) experienced a significant jump on Tuesday, rising by 14.26% to reach a day high of Rs 154.65. This sharp increase was attributed to the media firm's successful resolution of merger termination disputes with Sony Pictures.
The announcement of a comprehensive non-cash settlement amicably resolved all disputes related to the Merger Co-operation Agreement and the Composite Scheme of Arrangement between ZEEL, Culver Max Entertainment Pvt Ltd (CMEPL) operating as Sony Pictures Networks India (SPNI), and its group company Bangla Entertainment Pvt Ltd (BEPL).
As part of the settlement, all respective claims against each other in the ongoing arbitration at the Singapore International Arbitration Centre, and all related legal proceedings initiated in the National Company Law Tribunal (NCLT) and other forums, were mutually withdrawn. Furthermore, the companies committed to withdrawing the respective Composite Schemes of Arrangement from the NCLT and informing the relevant regulatory authorities.
The stock's activity reflected the news, with a high trading volume of approximately 55.71 lakh shares changing hands, surpassing the two-week average volume of 5.87 lakh shares. Turnover on the stock reached Rs 82.40 crore, resulting in a market capitalisation (m-cap) of Rs 14,470.23 crore.
Technical indicators revealed that the scrip traded higher than the 5-day, 10-, 20-, 30-, 50-day, and 100-day simple moving averages (SMAs), but lower than the 150-day and 200-day SMAs. The stock's 14-day relative strength index (RSI) stood at 62.74. A level below 30 is considered oversold, while a value above 70 is considered overbought.
According to the Bombay Stock Exchange (BSE), the company's stock has a price-to-equity (P/E) ratio of 30.36 against a price-to-book (P/B) value of 1.30. Earnings per share (EPS) stood at 4.46, with a return on equity (RoE) of 4.28.
As of June 2024, promoters held a 3.99 per cent stake in the firm.