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Last Updated : Apr 05, 2019 11:25 AM IST | Source: Moneycontrol.com

Zee Ent declines as Morgan Stanley assigns 'underweight', expects stock to be volatile

Founder Subhash Chandra last year said it would sell up to 50 percent of his stake

 
 
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Zee Entertainment Enterprises shares fell over a percent in morning on April 5 after Morgan Stanley remained underweight on the stock.

The global brokerage firm set target price at Rs 425, implying nearly 2 percent upside from current levels.

The stock was quoting at Rs 413.30, down Rs 4 or 0.96 percent on the BSE, at 10:31 hours IST.

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Zee Entertainment is considering roping in private equity (PE) investors as part of its stake sale process after the talks stalled with Sony, Business Standard said in its report on April 3.

Zee’s promoters have been reportedly in talks with many investors to offload 20-25 percent stake in the company to pay off loans taken by pledging shares.

"Talks with some potential strategic partners may not be moving as expected. If reports are correct, it runs somewhat contrary to what promoters had alluded," Morgan Stanley said.

Morgan Stanley said lenders had given promoters time until September to raise funds. Developments could keep the stock volatile in the interim, it added.

The stock has been quite volatile for many months now. Founder Subhash Chandra last year said it would sell up to 50 percent of his stake after its investment in infra segment failed to give return as expected by him and for which, it had created pledge on its promoter shares.

NDTV report quoting sources privy to the development, on April 4, suggested that telecom majors Bharti Airtel and Reliance Jio plan to offer bids for stake in the Zee Entertainment Enterprises.

Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

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First Published on Apr 5, 2019 11:25 am
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