Zee Entertainment Enterprises share worth noticed sharp decline of greater than 25% on the NSE and the BSE, submit Sony ended its merger settlement and demanded $90 million in termination charge. As the inventory erased greater than ₹5000 Crore market-cap, all traders together with Mutual funds have been on the receiving finish.

The Mutual Funds are prone to have seen wealth erode by greater than ₹1900 crore

As per the shareholding sample information obtainable on the BSE , on the finish of December’2023, 29 mutual Funds have been holding shares within the Zee Entertainment Enterprises. The whole mutual fund shareholding proportion stood at 32.49% because the mutual funds held 31,20,70,141 shares within the Zee Entertainment Enterprises.

Overall whereas 7 promoters have been holding 3.99% stake in Zee Entertainment Enterprises, public share holding stood at 96.01%.

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The main mutual fund share holders included ICICI Prudential Value Discovery Fund that was holding 7.25% stake in Zee Entertainment Enterprises. Other outstanding mutual funds have been Nippon Life India Trustee Ltd-A/C Nippon India Multi Cap Fund that held 6.12% stake whereas HDFC Mutual Fund – HDFC Mid-Cap Opportunities Fund’s share holding stood at 5.2%

Among others have been Tata Large And Mid-Cap Fund, Aditya Birla Sun Life Trustee Private Limited A/C Aditya Birla Sun Life Arbitrage Fund, Kotak Equity Arbitrage Fund holding 2% or extra stakes.

About 51 Mutual Funds purchased and 33 Mutual Funds bought Zee Entertainment Enterprises Ltd. within the month of December 2023 for a web change of 1,415,436 shares as per Trendlyne.com information

Zee Entertainments Enterprises share worth decline was led by Japan’s Sony Group Corp determination on terminating its merger with Zee Entertainment Enterprises Ltd. On Sunday twenty second January, Sony had despatched termination letter citing its plans to name off the merger between its India unit and the media community.

Sony not solely ended the merger settlement, it additionally has demanded $90 million in termination charges. Zee rejected the demand and mentioned it plans to take authorized motion to guard stakeholder pursuits.

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Various Brokerages have downgraded the Zee Entertainments shares .

Motilal Oswal Financial Services downgraded the inventory and indicated for greater than 13% draw back.

We don’t anticipate a restoration in earnings within the close to time period. Zee has not said whether or not it’ll pursue the merger whereas the litigation with Sony might hinder enhancements in operations or discover a merger with different gamers, mentioned analysts at MOFSL.

Disclaimer: The views and suggestions made above are these of particular person analysts or broking firms, and never of Mint. We advise traders to examine with licensed consultants earlier than taking any funding selections