Zee Entertainment Enterprises share price was trading lower by over a percent in the morning session on September 30 after Invesco dragged the company to NCLT over delay in fixing EGM date for Punit Goenka ouster.
Invesco on September 29 moved the National Company Law Tribunal (NCLT) against Zee Entertainment Enterprises for not announcing a date for an extraordinary general meeting (EGM) sought by the US fund to reconstitute the board of the media company and oust its chief executive and managing director Punit Goenka.
Invesco, which along with OFI Global China Fund LLC holds a 17.88 percent stake in Zee, will be represented by Dhruve Liladhar & Co in court and Trilegal will represent Zee.
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“The Board of the Company remains committed to act within the framework of law and is focused towards enhancing the Company’s growth and shareholder value. It is in the process of taking the required steps within the statutory period. The Company does not wish to comment on any impulsive or premature steps taken by Invesco Developing Markets Funds and OFI Global China Fund, LLC,” said a Zee spokesperson in an emailed statement
Meanwhile, LIC said it is monitoring the situation at Zee and that policyholders' interest and LIC's value in the company will be paramount factors to consider during the vote, reported CNBC-TV18.
LIC owns 4.89 percent stake in Zee as on June 2021.
Invesco first sent a letter to Zee requesting the company to convene an EGM on September 11, which the latter received on September 12. Therefore, Zee needs to announce an EGM date by October 2 at the latest. Proxy advisory firms Moneycontrol spoke to said they were puzzled why Invesco jumped the gun when Zee has time till the weekend to announce an EGM date.
The stock was trading at Rs 306.30, down Rs 3.50, or 1.13 percent. It has touched an intraday high of Rs 308.50 and an intraday low of Rs 302.80.
The stock has been under pressure, falling over 9 percent in the last 7 days. Market regulator Sebi banned five persons in Zee Entertainment insider trading case
. "Bijal Shah, Gopal Ritolia, Jatin Chawla, Gomti Devi Ritolia and Daljit Chawla are restrained from buying, selling or dealing in securities, either directly or indirectly, in any manner whatsoever until further orders," Sebi said in its 43-page confirmatory order.