Shares of Zee Entertainment slipped over 4% in early trade today after the board of the media firm approved the merger with Sony Pictures Networks India (SPNI).
The stock plunged 4.65% to Rs 332.75 against previous close of Rs 349 on BSE.Market cap of Zee Entertainment fell to Rs 32,431 crore.
The stock opened lower at Rs 347.
The stock hit 52-week high of Rs 378.60 on December 15, 2021 and 52 week low of Rs 166.80 on August 23, 2021 on BSE.
It rose 2.57% intra day to Rs 358 before falling into negative territory. Total 12.60 lakh shares of the firm changed hands amounting to turnover of Rs 43.83 crore.
Zee Entertainment share is trading higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages.
Earlier in November, Zee MD and CEO Punit Goenka had said that the proposed merger “is in the final stages.”
According to the deal, Sony will invest $1.5 billion, and hold 50.86 per cent stake in the merged entity. Zee will hold 45.15 per cent stake. The merged entity’s nine-member board will include five Sony executives.
The combined entity will own over 70 TV channels, 2 video streaming services (ZEE5 and Sony LIV) and two film studios (Zee Studios and Sony Pictures Films India) making it the largest entertainment network in India. Its nearest rival would be now Star and Disney in the Indian market.
