SEBI bars ZEEL from securities markets and bans promoters
Zee Entertainment (ZEEL) saw its shares drop by 12% on Monday (the biggest fall in over two years) after SEBI banned the company from accessing securities markets for two months.
Promoters Punit Goenka and Subhash Chandra got hit with a one-year ban after SEBI found that ZEEL's Hyderabad property was used to secure ₹726 crore in loans for other Essel Group companies without proper board approval.
ZEEL warrant issue of ₹3,143.5cr paused
ZEEL's plan to raise ₹3,143.5 crore through a preferential issue of 24.95 crore warrants is now on pause, even though most shareholders said yes. Legal experts say it can't go ahead during the ban.
Meanwhile, analysts are positive: CLSA still sees potential and kept its "outperform" rating with a target of ₹125, while Kotak upgraded to "add," pointing out Zee's music business could be a bright spot.
ZEEL shares were trading at ₹105, down 8.2%.