Shares Surge Following Block Trade of 1.29 Million Shares
On August 28, shares of Zee Entertainment witnessed a significant gain. In the opening deals, an impressive 1.29 million shares of the company were traded in a single block, according to Bloomberg data. This notable trade played a crucial role in driving the stock price upwards.
Brokerages Share Outlook Post-Merger Settlement
Several brokerages have expressed their views following the resolution of the merger dispute between Zee Entertainment and Sony India. This agreement effectively settles all ongoing disputes between the two firms, relieving Zee and Sony from all document claims. The agreement also includes the withdrawal of all claims related to the $90 million termination fee and other associated litigation costs.
Analysts’ Perspective on Future Risks and Opportunities
Analysts at Emkay have noted that this settlement brings an end to a nearly three-year-long tumultuous period. However, they caution that Zee Entertainment still faces other legal risks. These include Disney’s ongoing proceedings for non-compliance related to cricket rights purchases and Punit Goenka’s ongoing SEBI case.
Citi’s Sell Call and Business Fundamentals
Citi has issued a sell call on Zee Entertainment, with a target price of Rs 137 per share. The foreign brokerage firm emphasized that the focus should now shift to the company’s business fundamentals. They believe the recent settlement with Sony India is likely to ease some investor concerns, yet it’s crucial to stay vigilant about potential lingering legal issues.
