Shares of Zee Leisure Enterprises (ZEEL) hit a 52-week excessive of Rs 363.50, up 4 per cent on the BSE in Monday’s intra-day commerce in in any other case subdued market. The inventory of broadcasting & cable TV operator has surpassed its earlier excessive of Rs 362.85, touched on September 23, 2021. As compared, the S&P BSE Sensex was down 0.35 per cent at 57,493 factors at 10:17 am.
Up to now two weeks, the inventory has rallied 22 per cent after after Punit Goenka, MD and CEO of ZEEL mentioned that merger talks between the corporate and Sony Photos Networks India (SPNI) are in remaining levels.
ZEEL and SPNI had introduced a merger in September of their India companies with Sony holding the bulk stake. About 53 per cent of the merged entity can be owned by Sony and the remaining by Zee’s holders, in response to the non-binding settlement signed in September. In previous three months, the market value of ZEE more-than-doubled or up 102 per cent, towards 1.4 per cent decline within the S&P BSE Sensex.
On September 14, 2021, Ace investor Rakesh Jhunjhunwala’s Uncommon Enterprises had purchased 5 million fairness shares of ZEEL, price of Rs 110 crore, at a value of Rs 220.44 per share via bulk deal transactions on NSE.
In the meantime, analysts at Emkay International Monetary Providers have maintained ‘purchase’ score on ZEEL with revised goal value of Rs 415 (Rs 430 earlier). “With a transparent give attention to market share positive factors, content material launches ought to stay at elevated ranges in H2. Zee can be focusing on the discharge of 17-18 unique exhibits, with the view of accelerating the revenues from Zee5. Advert revenues are anticipated to rise in H2FY22 and attain pre-Covid-19 ranges, however that is contingent on market share restoration throughout key channels,” the brokerage agency mentioned in September quarter end result replace.
The has administration said that the due diligence course of for the Zee and Sony Photos Networks India (SPNI) merger is progressing effectively. The profitable competitors of this, together with shareholder approval for the deal, can be the important thing near-term triggers for a re-rating, it added.