Zee inventory tanks 33% as deal scrapped

MUMBAI: The inventory worth of Zee Leisure crashed 33% in Tuesday’s commerce after the corporate’s proposed $10-billion-merger with Japan-based international media large Sony was terminated on Monday. After the announcement of the termination by Sony, a bunch of brokerages modified their stance on Zee and downgraded the inventory.
The inventory opened at Rs 209 – down the utmost 10% slide potential throughout preliminary trades – and misplaced worth via the session to hit an intra-day low of Rs 153. It closed on the similar degree.
In impact, in only one session, Zee’s shareholders collectively misplaced a 3rd of the worth of their shares. From a market capitalisation of about Rs 22,560 crore on Saturday, the media main is now value Rs 14,974 crore now.

International broking main CLSA mentioned it was downgrading Zee from ‘purchase’ score to ‘promote’ because the merger was referred to as off after it received regulatory and shareholders’ nod. Competitors within the broadcasting sector (the place Reliance Industries inked a deal to merge Disney’s India properties with itself), company governance points and low promoter holding (right down to 4% from 41% 5 years in the past) are some challenges flagged by the CLSA report. It has put a worth goal of Rs 198 for Zee.
One other report by home broking home Nuvama identified that Zee’s near-term valuation shall keep suppressed attributable to “Sony looking for a termination charge, uncertainty with respect to Zee’s new technique and companions, and motion of its minority stakeholders”. Nuvama has downgraded the inventory to ‘cut back’ with the goal worth at Rs 190, the identical as CLSA.