The stake sale from promoters in the open market could be seen, as a desperate move to pay off some lenders from proceeds, Sharekhan said in a note
Zee Entertainment plunged over 7 percent intraday on February 13 on reports that promoters of the company sold 8.3 lakh shares in the open market from February 5-7.
As per the BSE data, one of the Zee promoter’s group sold 8.3 lakh shares or 0.09 percent in the open market. Last month, shares of Zee Entertainment saw a steep decline weighed down by concerns over probe against the promoter group, the risk of promoter share pledge being invoked, as well as stake sale concerns which dented sentiment.
However, the management, in an investor conference call last week clarified that they have not been investigated by any agency over such alleged fraud.
The stake sale from promoters in the open market could be seen, as a desperate move to pay off some lenders from proceeds, Sharekhan said in a note.“Earlier, management stated that they have an agreement with lenders not to sell shares in the market till September 2019. Given the lesser clarity on strategic stake sale and lender’s issue, we continue to advise investors not to do bottom fishing and wait for more clarity to emerge,” it said.