The Essel Group has sold 15.7% stake in Zee Entertainment via block trades at Rs 304 per share against the Rs 277-floor-price-per-share to financial investors. The sale raised Rs 4560 crores, which will be used to repay lenders including VTB Capital (Rs 2000 crore), Birla MF (Rs 750 crore), HDFC PMS (Rs 550 crore), L&T Finance (Rs 250 crore), and ICICI Prudential (Rs 270 crore).
Zee Entertainment shares surged 15 percent in the opening hours on Thursday, and stock price was trading 8.17 percent higher at Rs 332.25 per share, despite the benchmark Sensex being down 0.08 percent (at 0925 hours).
Punit Goenka, MD & CEO, ZEE Entertainment Enterprises Ltd., said, “I am overwhelmed by the positive response received from our investors. Glad to share that the book was over-subscribed by approximately 3 times. I am grateful to our lenders and investors for their trust and support. I remain committed to elevate ZEE to a global media & entertainment powerhouse”
The Essel Group now retains 5 percent stake in the company. Punit Goenka will most likely remain MD & CEO of one of India’s oldest and most respected entertainment conglomerates, with single largest shareholder Oppenheimer reportedly resolute upon his continuing at the helm for the sake of ZEEL’s future… The recent reappointment of Goenka as MD & CEO will need to be ratified and approved by the shareholders, and word is that due to the Oppenheimer support, even with a minority shareholding, the Essel Group will continue to run the business.
This seems logical too, considering the depth and width of experience that both, Punit Goenka, and his illustrious father and the original eminent Media Visionary of India, Subhash Chandra Goel, bring to the table. Along with a team of some of the best professionals across the sub-sectors.