Home›US Markets›M&A & Deals›Zee Entertainment shares drop more than 14% after lend…

Zee Entertainment shares drop more than 14% after lender appeals

The selloff follows lenders Canara Bank, Union Bank of India and LIC Housing Finance filing appeals against an NCLT approval of Essel Group founder Subhash Chandra’s repayment plan.

Reported · Written up by our desk · M&A & Deals

Zee Entertainment shares fell sharply in intraday trading on August 31, dropping by more than 14% on the BSE after opening at ₹100.85 versus the prior close of ₹101.55. The stock slid as much as 14.3% to an intraday low of ₹87 before trimming losses to trade around ₹92.45, down nearly 9% by about 10:45 AM, in what would extend losses for a fourth straight session, LiveMint Markets reported.

The move comes amid heavy selling after three lenders, Canara Bank, Union Bank of India and LIC Housing Finance, said they will challenge an NCLT order that approved a repayment plan proposed by Essel Group founder Subhash Chandra. The lenders said they opposed the plan, which provides for ₹6.25 crore to be distributed among creditors and another ₹25 lakh for insolvency process costs.

LiveMint Markets said the NCLT had approved the plan on August 25 despite objections from several financial creditors. The lenders’ appeals will move the dispute to the NCLAT, with the NCLT plan calling for ₹6.25 crore to be paid to creditors against admitted claims of about ₹22,006.57 crore.

Despite the steep day’s decline, Zee Entertainment was up roughly 1% year-to-date at the time of the report, compared with a 10% fall in the Sensex. Over the past year, the stock has dropped about 21%, reaching a 52-week low of ₹68.10 on March 23 and a 52-week high of ₹121.75 on September 22 last year, according to LiveMint Markets.

Latest closeSensex 76,933.59 ▼0.7%

More like this

Sources