Zee Entertainment’s share price rallies up to 17% as Invesco puts down the sword

• Zee Entertainment witnessed a steep jump of over 17% in early morning trade on Thursday.
• Zee Entertainment Enterprises Limited’s market capitalisation reached ₹28,786 crore ($3.7 billion).
• The development comes after Invesco Developing Markets Fund decided not to pursue the EGM.

The share price of Zee Entertainment Enterprises Limited witnessed a steep jump of over 17% in early morning trade on Thursday. The company was trading at ₹300.25 at 10:01 a.m., on March 24.

With this, Zee Entertainment Enterprises Limited’s market capitalisation reached ₹28,786 crore ($3.7 billion).

The development comes after Invesco Developing Markets Fund — the largest shareholder of Zee Entertainment Enterprises — decided not to pursue the extraordinary general meeting (EGM).

The investment firm noted that the newly combined Zee-Sony entity will be substantially reconstituted and this will strengthen its board oversight. Invesco, in a statement, also emphasised it will continue to monitor the progress of the proposed merger. Invesco still retains the right to requisition a fresh EGM in case the merger is not completed as proposed.

Both the companies — Zee Entertainment and Invesco — were entangled in a legal dispute since last year. Invesco reportedly wanted changes at Zee in the light of alleged corporate governance and financial irregularities that plagued the company. The issues were even flagged by the market regulator.

Invesco, which holds 18% shareholding in Zee Entertainment, had suggested six new independent board members to be appointed at Zee Entertainment. It also sought removal of Zee Entertainment’s current chief executive offering (CEO) Punit Goenka.

The investment firm, on September 11, also asked Zee to call an EGM of shareholders to consider their demands. Bombay high court has also recognised Invesco’s requisition for EGM as legally valid.

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